Tax Refunds & Advice

Worrying about a tax audit every year is no way to live your life. While there is always a chance that you will get hit with an audit, the odds are against this happening. To make sure that you have nothing to worry about, take the time to ensure that your return is 100 percent accurate. If you do this, an audit may still be annoying, but you can be rest assured that you will not get in any trouble.

1. Check your math more than once. The most common reason for a mistake on your tax return is a math related error. Make sure that you use a calculator, and that you double and triple check your work. A simple mistake could cost you a lot of money in penalties.

2. Never go overboard with your deductions. While there is nothing wrong with using legitimate deductions, stretching the truth could get you in trouble. When it comes to deductions, you need to remember two things: be honest, and keep track of each and every deduction. If you have a receipt, you can prove your claim.

3. Get help from a professional. They know what they are doing, as well as how to organize everything as to avoid an audit. Some professionals will even promise to work with you free of charge if the IRS decides to audit you.

In most cases, returns are audited anywhere from the time of filing up to 18 months. With that being said, the IRS can audit your return for up to three years. For this reason, you never want to throw out information from past years.

While there is no science to avoiding an audit, you can use the three tips above to better your chance of slipping through the cracks.