Three Red Flags Your CPA Can Identify to Avoid IRS Audit

Each tax season, only a very small percentage of Americans will be pulled into a tax audit by the IRS. However, though this is the case, the possibility of an audit is always something which hangs in the background when you prepare your return. Competent CPAs can help you avoid audits by identifying certain errors which, if left uncorrected, are likely to draw the attention of the IRS. Here are three red flags which your CPA can help you identify:

Preparer Mistakes

If your CPA isn’t the one who filed your taxes, be sure to check your tax forms to guarantee your forms are error free. It doesn’t matter who made the mistakes, it is ultimately your responsibility to make sure information on your tax forms is accurate.

Charitable Donations

If you have given to several charities, make sure that the donator documentation matches whatever number you put on your tax form. Lying to say you gave more than you actually gave is a federal crime that could cost you thousands or even potentially lead to jail time.

Dependents

One hundred percent of the things you put on your tax form can be fact checked, and many people are often guilty of claiming dependents which they really can’t claim. Make sure you’re not making any claims on your tax forms that you know are invalid.

While tax season can be very stressful, it is always better to be safe than sorry. If you’re not sure about something you put on your tax forms, either ask or make sure you have valid documentation to back up whatever you put down. Though very few individuals will be audited by the IRS, you want to be certain you keep all of your tracks covered just in case you do face an audit.

Do you have other tips that can help you avoid IRS audit? Leave your comments below.

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