Getting a tax audit from the IRS can really be a hassle. Avoiding the attention of the IRS would be the best way to avoid being audited. It pays to know what catches the eye of the IRS people that will make them decide that it may be time for an audit. Here are just some of them.
Incomplete Income Declaration
Audits are primarily a result of certain errors in tax filing that the IRS people have somehow discovered. One of the common errors that easily get their eye is by declaring an incomplete income for the tax year when filing.
It is important to try and list all possible sources of income during the tax year in order to avoid getting the attention of the IRS.
Tax Write Offs
Another possible target that IRS look into that may warrant an audit is the tax write off. The IRS is known always look closely at certain income groups to look for possible errors. Most of the usual cases are those tax filing made by the wealthy.
There are certain deductions that the wealthy usually place in their tax filings as a result of their charitable contributions. Such deductions usually are looked closely by the IRS and the individual should be ready to come up with the required documentation to back up the claims of the charitable deeds.
Excessive Deductions
Another group that the IRS usually is strictly looking into is those who have claimed income credit usually provided for low income individuals. The IRS strictly enforces the stringent tax qualifications for low income individuals especially for earned income credit.
It may be quite all right if the individual rightly qualifies for the said tax provision, but people should be wary of making excessive tax deductions just to save some tax dollars.
People with disproportionately high claimed deductions at a certain income bracket are always on the IRS radar. People should know the average amount of deductions accepted for their income level or bracket in order not to go over and risk being audited.
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