What Triggers An IRS audit?
Notifying you that your audit is underway could ruin your day or your next few weeks. Although it might be tempting to ignore an audit notice and hope it will disappear, it is best to address it immediately. But what triggers an IRS audit? Avoiding certain mistakes may help to prevent your tax form from being flagged. An honest and complete tax form is more likely to be subject to IRS scrutiny. These are just a few of the factors that could trigger an IRS audit.
Although a typo might be an innocent error, the IRS won’t ignore it. Even if the error was not intended, it could lead to a fine. Don’t just go through your tax return. Before submitting your tax returns, make sure you thoroughly review them.
Rounding Your Numbers
The majority of things are priced in dollars and change. A list that is only whole numbers can be suspect. To be more precise, instead of rounding up your expense estimate to the nearest hundredths, round up to the nearest dollar.
Failure to disclose Income
You should fill out two separate tax forms W-2 if you are an independent contractor and an employee. You could end up paying more if you don’t record money earned as an independent contractor. The IRS will generally discover undeclared income if the hiring party has a record.
Only deduct expenses that are directly related to your work. If these items are not questioned, then you should be able to justify the expense. You should not claim a charitable donation as an income deduction. This could cause tax problems.
Incorrect File Status
A sudden change in your filing status could attract IRS attention. This is because certain filing states resulted in paying lower taxes. Falsely claiming dependents that are not there or credit for which you are not eligible may also trigger an investigation.
The IRS will inspect your self-employment to make sure you don’t take advantage of tax benefits. The IRS could suspect that your sole proprietorship isn’t legitimate and you don’t make any income from it.
Corporate Tax Form
To verify that the numbers are correct, the IRS might compare your tax return to that of your employer. The IRS might request an explanation if there is any discrepancy in your tax return and that of the corporation.
Now that you know what triggers an IRS audit, avoid future IRS problems, be truthful in your tax return. It is not worth lying on your tax return, as it can lead to penalties and fines. A tax attorney can help you with your tax returns and tell you more information on what triggers an IRS audit. The offices of Tenina Law specializes in tax law for both individuals and businesses.
Choose Tenina Law For Tax Resolution
We are Southern California’s best IRS tax attorney. Tenina law is a group that has been in business for more than 20 years. We are tax experts and have successfully managed numerous IRS negotiations. No matter if you’re a business owner, or someone looking for immediate help with tax issues, we can help. Penalties and interest will not stop accruing as long as the tax problem isn’t resolved. Our team can help you get the tax assistance that you need quickly. Our team is open and transparent, so you will get the right information to solve your tax problems. We want you to be able to quickly and efficiently get the answers that you need to resolve your tax problems.
The Services Provided By Tenina Law
- Non Filed Returns
- Asset Or Property Seizure
- Criminal Tax Defense
- Wage Garnishment
- Installment Agreement
- Levies And IRS Liens
- Penalties And Interest
- And more