How do I protect myself from an audit?
You can help protect yourself from an IRS tax audit by following these simple suggestions:
Maintain good records. If you are ever called in for an IRS audit, you will need to have good records. If you do not, you can be assessed a penalty. A poor record keeping system can signify willful neglect.
Hire a professional. If you are not tax knowledgeable, hire someone who is. A trained tax professional can help you with your tax situation. Perform a background check prior to hiring.
Obtain IRS Publications. Whenever an IRS tax area affects you, obtain the applicable IRS Publication. They make good reference tools throughout the year. Even if you totally do not understand them, they do provide a foundation of useful information.
Respond promptly to any IRS communication. By doing this, you will protect yourself from further IRS questioning and possibly audit.
Respond honestly with IRS. Answering questions completely and honestly when communicating with the IRS is essential to your success.
Take advice. Even if you are not completely knowledgeable about tax laws, take your tax professional's advice.
Know tax implications. By knowing the tax implications of any purchases, you can help avoid audits.
Meet deadlines. Meet the tax filing deadlines. Do not file late. Do not have your tax return stand out if you want to avoid the possibility of an audit.
Paying on time. Pay your taxes on time. Same reasoning as above applies.
Follow guidelines. Follow the IRS guidelines regarding applicable areas. For instance, if you have a home business, know the intricacies of that area before you claim it on your tax return.
Double check. Double check your tax return prior to filing it. Make certain everything is correctly filled out. Make certain you have not included too many zeros, for instance. Make certain there is something on each applicable line.
High risk areas. If you are involved in an audit high-risk area, make certain all of your information is correct. Even though you may be involved in an area known as high risk, not everyone is unscrupulous. Prove that you are not. Have someone else go over it.
Tax Relief Frequently Asked Questions
What is one IRS Penalty?
Is there a penalty for not reporting my social security number?
What is the IRS penalty for not filing my tax return?
What is a frivolous return?
Is there a penalty for paying taxes late?
What is an example of a tax evasion case?
What is tax fraud?
What is tax evasion?
What is innocent spouse relief?
Can I see an example of innocent spouse relief?
When does innocent spouse relief not apply?
What form do I need to request innocent spouse relief?
How can I appeal an innocent spouse relief?
What are some innocent spouse relief rules?
Am I eligible for innocent spouse relief?
Where do I mail my IRS Form 8857?
What is corporate tax evasion?
What are some payroll taxes?
How about an actual case about corporate tax evasion?
What are some fringe benefits?
What is tax relief from a tax loss?
How can state taxes paid provide tax relief?
What is some small business tax relief?
What happens with unpaid payroll taxes?
What is an automatic IRS installment plan?
What are some documents needed for payment plans?
What is the drawback to an IRS installment plan?
What if I fall behind in my tax payments?
How can I make payments on my IRS payment plan?
What form do I need for requesting an IRS installment plan?
How do I request an IRS Payment plan?
What is an IRS tax installment agreement?
What are the guidelines for applying for an OIC?
Be weary of what?
Are there examples of OIC case studies?
How do I calculate my OIC offer?
When can I apply for an OIC?
What is an offer in compromise?
What are the procedures for an OIC?
What is an uncollectible account?
What are back property taxes?
Where can I get federal tax lien information?
What is a release of federal tax lien?
What is a notice of federal tax lien?
What property can be subject to a tax lien?
What is the tax lien process?
How do I perform a tax lien search?
What is a high risk taxpayer for tax liens?
What is a tax lien?
What assets can be levied?
How do I appeal an IRS levy?
What is a bank levy?
What starts the levy process?
What is a Notice of Levy?
How can I release a tax levy?
What is a state tax levy?
What is the difference between a tax lien and levy?
What is a wage levy?
What are some high risk trigger areas?
What are some IRS audit red flags?
Can I represent myself during an audit?
How long does the IRS have to audit me?
How do I prepare for my IRS audit?
How do I protect myself from an audit?
What is the IRS Taxpayer Bill of Rights?
What are some types of IRS audits?
How do I appeal a wage garnishment?
Can I see a wage garnishment case?
What is a wage garnishment?
What is a IRS warning?
What if I am self-employed?
How do I stop wage garnishment?
How do I release a wage garnishment?
Why do I have a wage garnishment?
What is my responsibility with wage garnishments?
How can an amended return give me tax debt help?
What is bankruptcy?
What is the debt calculator?
What is state tax debt?
What is a tax debt help mistake?
Who is a tax debt pro?
What is the Taxpayer Advocacy Services?
What is an uncollectible category?
What is a back tax form?
How do I file back taxes?
How do I pay back taxes?
What is the IRS statute of limitations?
What if I didn't receive a W-2?
What are the penalties for not filing my return?
What is a special situation regarding back taxes?
What is the IRS statute of limitations for back taxes?
What about the IRS & Substitute Tax Forms?
What is a penalty abatement?
What is an example of a penalty abatement?
What is a reasonable cause for penalty abatement?
How do I request a penalty abatement?
How do I request an interest abatement?
What is a penalty abatement request letter?
What about penalty abatements?
What if I rely on IRS incorrect advice?