An Irvine tax help professional says that the IRS normally conducts audits via a random statistical formula, thus you must always be prepared to be evaluated. If you are handling your finances efficiently and correctly, there’s nothing to worry about; the IRS contacts you via mail (never via phone) to alert you of an impending audit. This could end in the possibility of an in-person meeting, which is rarely a pleasant experience. There are a couple of obvious red flags the IRS seeks which, could end in an audit. This article lists the easy mistakes so you know whether you are making them or not.
1. Unreported income
Even though you might be thinking that it is very easy to keep track of it, your unreported income will surely end up making a noticeable difference. When you have multiple sources from which you make your income, it could end up snowballing into a large sum of unreported income by the time the end of the tax season comes around. This is one mistake that causes the IRS to automatically conduct a letter of audit at the barest minimum. An expert bookkeeper will be able to help you in keeping your income information quite organized.
2. Making more than two hundred thousand dollars annually
The IRS is a lot more interested in citizens who make higher returns. Actually, in 2015 alone, 55.2 billion dollars was gathered via collections – the highest return surely came from individuals who made high incomes. A tax and bookkeeping expert says that your tax return is more likely to turn out a bit more complex the more the income that you earn, thus the IRS could end up finding more audit triggers in your return. Of individuals who make over one million dollars, 12.5% always end up being audited. With a percentage that is that high, you might want to consider hiring an expert and a real professional to help you in conducting a completely flawless tax return.
3. Excessive deductions of business expense
The IRS features a threshold when it comes to business expenses that they consider to be normal for every single occupation. If your expenses happen to be 20% or more above the set threshold, then you could probably end up being audited. Usually, vehicle expenses are passed by, but if you have got lots of entertainment or meals deducted in your return, then that could end up being a fine line that the IRS might be quite willing to cross. If you have any worries as regards being audited by the IRS, then the foremost expert bookkeepers can help to get your mind eased.
In conclusion, if you have any concerns as regards an IRS audit during this present tax season, then you should put your trust in the foremost tax professionals and bookkeepers. Unlike several other accounting services providers, the foremost Irvine tax help professionals do not charge you any fees for phone calls or emails, and they always strive to have truly open communications with all of their clients. Whether your interest if to know about tax preparation, payroll services, retirement planning, business advice, or even support/training, they always help.
