Steps for Preventing a Tax Audit
To start, listen up: there is no full-proof method for preventing a tax audit. If the IRS wants to audit your return they are going to do so. This holds true no matter who you are, where you live, or how much money you make. But with all of that in mind, you should also know this: there are some steps you can take to help your cause. They may not work, but at the very least you should give them a try. After all, a tax audit is not a good time even if you know you will come out free and clear in the end.
The best way to prevent a tax audit is to prepare an accurate return from start to finish. If you stretch the truth at all, and the IRS catches on, it will throw up a red flag. As long as you keep good records for everything from your income to deductions you should not have anything to worry about. If you don’t have the knowledge to prepare your own return with 100 percent accuracy you should hire a tax professional to assist you.
If you are a freelancer or work for yourself in any capacity, even if not full-time, you must keep perfect records. The IRS knows that anybody who files a Schedule C is more prone to mistakes. It is very important to keep perfect records even if it means spending more time and money doing so.
As long as all of your information is accurate and correct you are putting yourself in good position to avoid a tax audit. Does this mean that the IRS will never come calling? Of course not. But even then, you should do anything you can to avoid a tax audit.
