IRS Audit Triggers Revealed

An IRS audit can cause more than undue stress. If you are faced with an IRS audit and your paperwork and tax returns are not in order, you could be facing a pile of debt, penalties and fees, wage garnishment, and liens. It is important to know what triggers an audit so you can avoid hefty IRS penalties. 

Here are some audit triggers you should avoid if possible:

• Making mistakes on your tax return: Miscalculations, forgetting to fill out areas specified on your return, and not signing your return can spell trouble. These simple mistakes can trigger scrutiny of your return and a possible audit. It is a good practice to double check your return for possible mistakes or accidental omissions.
• Misreporting your income: If you do not claim all of your income, or you have gravely misrepresented your income, this can trigger an audit. Any entity you did work for as an employee, subcontractor, or freelancer will have documentation of the amount you earned and will submit it to the IRS. It is important to make sure you have documented all of your earnings and they match your employer's forms. Keeping track of your earnings and write offs is essential.
• Misreporting foreign assets: No matter where you put your assets, the IRS is watching. According to the Foreign Account Tax Compliance Act, foreign banks are required to track and submit information on all account activity. On your tax forms, you must admit to having a foreign account, state the institution or holding bank's name, and report a dollar amount of how much is in the account.
• Misrepresentation of write off expenses: Excessive write offs for expenses can trigger an audit. Mixing business and personal expenses can also be curious in the eyes of the IRS. It is always a good practice to speak with your tax professional when unsure if your expense write-offs seem will seem suspicious to the IRS.

If you have been audited and need to seek tax relief California, it is important to speak with a tax professional as soon as possible. Your tax professional can help reduce what you owe and have wage garnishments and liens removed. If you are struggling to pay your IRS debt, your tax professional can help you apply for tax relief programs as well as set you up with an affordable payment plan.

If you are faced with an IRS audit, don't wait to contact a professional tax attorney. The experts at Optima Tax Relief have you covered and can help you survive audits, receive tax relief, and resolve your IRS tax problems. Devin Finley is a freelance writer and tax relief expert. Devin writes on a multitude of financial and legal topics. He enjoys collaborating and strategizing with other professionals to ensure tax & debt clients receive competent and beneficial representation. Click Here For more information.