Audit is the watch word during tax season and it often strikes fear into the hearts of small business owners. Sometimes an audit is inevitable, but there are some tips and tricks to avoid it.
- Just in Case, Triple Check: The first step may sound obvious, but check, check, and recheck your figures. A simple mistake can send up warning signs in the IRS and flag you for an audit. If it helps, have someone else look over all your forms to ensure you’ve filled in all the required information.
- The Truth and Nothing but the Truth: once again, this sounds like common sense but that amount of people that overestimate deductions or expenses. Too many deductions or unrealistic deductions will turn heads toward your returns and make an audit a possibility. If your deductions are factual but unusual, provide accurate documentation and/or explanations.
- Pay Attention to Directions: When filing forms, read all directions carefully. A surprising amount of mistakes are made simply by missing a step in the directions. Always read through things before starting to fill the forms in.
In any event, it is widely agreed that both e-filing and having a professional prepare your forms is the best trick in avoiding an audit. Contact us to help with your tax preparations!