How to Avoid an IRS Audit

How to Avoid an IRS Audit: What You Need to Know

How do you avoid an IRS audit? Diligent record-keeping, accurate reporting, and a keen understanding of the tax code. When you come to our tax preparation expert at Dorothy Butler Law Firm, you can help:

• Report all income accurately: This includes primary sources of income, such as salary or wages, as well as additional income, like freelance work, rental income, and investment dividends. Failing to report all income can raise red flags with the IRS and increase the chances of being audited.
• Double-Check Your Math and Ensure All Information is Correct: Even minor errors on a tax return can catch the attention of the IRS and potentially trigger an audit. It’s essential to double-check the math and ensure that all information on the return is correct, including numbers entered and personal information such as name, address, and Social Security number.
• Explain Any Discrepancies or Unusual Deductions: If there are any discrepancies or unusual deductions on a tax return, it’s crucial to provide a clear and thorough explanation. The IRS is more likely to flag returns that contain deductions significantly higher than the norm for the taxpayer’s income level or industry. If there are any deductions that may seem out of the ordinary, it’s important to include documentation that supports the claim and provides a detailed explanation of why the deduction is necessary and legitimate.
• Work with a Professional Tax Preparer Who Can Help You Stay Compliant: Working with a professional tax preparer is one of the most effective ways to avoid an IRS audit. Dorothy Butler Law Firm’s team of tax preparation experts has the knowledge and experience necessary to ensure that tax returns are accurate, complete, and fully compliant. They stay up-to-date on the latest tax laws and regulations and use this knowledge to help clients minimize their risk of an audit.

Working with a professional tax preparer, like Dorothy Butler Law Firm, gives you peace of mind knowing that your taxes are being handled by professionals and answering questions like, “How to avoid an IRS audit?” Want to learn more about our tax preparation services? We have a comprehensive guide that walks you through the process.