| Keep Neat | | | | eventually went to jail for tax evasion. |
| One of the easiest ways to get audited is by simply | | | | Be Honest |
| not providing all the correct documentation. When doing | | | | Things like round numbers and unrealistic charity |
| your taxes, it can be easy to miss a step or forget to | | | | deductions are a dead give away. Always be honest |
| include a few things. Unfortunately, this looks like | | | | on your return, even if it means you will owe the IRS |
| evasion to the IRS, so do everything you can to keep | | | | money. If audited and found in error, then the IRS will |
| all your tax documents together before tax season. | | | | assess interest and penalties on top of the original tax |
| That way you can make sure that all of your returns | | | | liability. |
| are accurate before you file them. | | | | Check With a Professional |
| | | | If you are not completely sure your information is |
| It's easy to get carried away when buying stuff for | | | | accurate or correct, then you should check with a tax |
| "the office". However, make sure that when you are | | | | specialist. Even if you are used to doing your taxes on |
| buying anything for your business that it is a business | | | | your own, making a big mistake on your return and |
| expense allowed by the IRS. Additionally, too many | | | | getting audited is not worth it. Hiring a professional may |
| write-offs for your business that seem suspicious are | | | | cost a little more, but at least you can rest assure that |
| a big red flag for the IRS, so only write-off items that | | | | your return was prepared correctly. |
| clearly serve a business function. | | | | Frugality |
| Check Your Income | | | | The more big and expensive items you buy, the more |
| Make sure the income you put on your return matches | | | | likely you are to make a mistake on your taxes and |
| the income number on your income forms exactly. | | | | get audited. To avoid accidentally missing a large ticket |
| While this does not always make for an audit, it only | | | | item on your tax return, try to buy your large items in |
| takes a few things to raise suspicion. Listing an | | | | moderation and keep records of all purchases. |
| incorrect income is of the easiest ways to get audited, | | | | Be Meticulous |
| but can easily be avoided by double-checking your | | | | Even if you do keep good records, hire a professional, |
| return before you file it. | | | | and spend frugally, you can still be audited. The only |
| Remember the Extras | | | | way to truly avoid this is to follow all of the above |
| It is imperative to include any and all cash gifts, | | | | steps, and then meticulously go over all your |
| gambling winnings, or contest prizes you received | | | | information and check for mistakes. When it comes to |
| during the tax year. One famous case of this mistake | | | | tax filing, mistakes are easy to make, and taking the |
| was the winner of the first survivor, Richard Hatch, | | | | extra ten minutes to review your return can save you |
| who "forgot" to claim his million dollar prize and | | | | a lot of time in the future. |