When you file your tax return, you hope you never have to deal with it again. Instead, you either pay a few dollars or receive a refund. From there, it’s time to move on to the next year.
Unfortunately, things don’t always work out this way. It’s possible you could receive the dreaded tax audit notice by mail. While there’s no guaranteed way to prevent an audit, there are some things you can do to help:
- Double check your figures: Any inaccurate or unrealistic figures are sure to stand out. Double check everything for accuracy.
- It pays to be honest: Sure, you think you can stretch the truth just a bit, but it’s never a good idea to do so. When you’re 100 percent honest, you never have anything to worry about. Even if you are subjected to an audit, you can work through the process with nothing to hide.
- Watch your deductions: Everyone is looking to use as many deductions as possible as a means of saving money. It’s okay to do so, as long as you’re realistic and honest. Don’t stretch the truth just to qualify for a deduction. It could come back to harm you.
- Rely on e-filing: The Internal Revenue Service strongly agrees that filing an electronic return greatly reduces the odds of a mistake, thus doing the same with an audit.
Even if you do all these things, you could still be subject to a tax audit. If this happens to you, learn more about tax laws and your legal rights. The information you collect will help you formulate a plan of action.