Sunday, April 26, 2009

Information on Avoiding an IRS Audit

If you make more than $100,000 per year then your chances of an IRS audit will increase. This is due to a past history of those in this income bracket manipulating the system to show their deductions as higher than they actually are in order to lower their taxes. Yet most people don’t want to limit their income to less than this if they don’t have to just to avoid an IRS audit.

Large amounts of itemized deductions on a tax return or large amounts of contributions to non profit organizations can really highlight your return. These are areas where the IRS is really getting tough because of fraudulent claims. Make sure you are very honest about these amounts on your tax returns.

You can be sure there are plenty of agencies that report income to the IRS as well. The online age and access to your personal banking information means that if your tax return is in contradiction with information received from banks, online sites such as PayPal, and other reports then you can be sure they will be contacting you for an audit. Even if you don’t get a 1099 or a W-2 for work you did you need to honestly report that income on your tax return.

More on this business article or Information on avoiding an IRS audit