Many people look at the word “audit” and get worried. The fact of the matter is, even the richest people may have to deal with audits andover ma during their career, if not multiple times. What can you do to avoid them effectively? Here are some tips.
Watch those deductions. Not saying you shouldn’t take what you are entitled to; on the contrary. There are tons of deductions out there if you do your homework and figure out what you are eligible for. But, if you have a lot of them, you could get audited.
Don’t forget your investments and other potential taxable income. If your numbers differ from the ones your bank or investments provide, it could raise a red flag to the computer system. Also, make sure you file each investment separately.
Check your work! Your math teacher wasn’t being annoying when they told you to do this. It really is important. Check everything at least twice to make sure that you’re accurate.
Company Car Costs. Do you use your personal vehicle for transportation for business and count them as a deduction? Make sure to log EVERYTHING, the mileage, the gas and receipts, the upkeep costs. Whatever you try to claim as business expenses, especially with a personal vehicle instead of a company one, it could possibly alert the computer system to get your claim checked out.
Paid in cash? If you are self-employed, a small business owner, someone who works in a family business, or whatever else, you have a high potential of being audited. There are $300 million in back taxes owed for people paid in cash.
Explore your options and work with a tax pro to sort out the details of everything. In the end, you’ll be much better off and audits are a lot less likely.