Avoid IRS Audit for Arizona Residents
- Use a tax program. Manually prepared returns are pieces of paper begging for attention.
- Don’t believe all the advice that shows up on the internet and news shows during tax filing season. Some of the advice I have heard would actually increase the likelihood of being audited.
- Extend the filing of your return. I have yet to have a client come in for an audit that filed a return right before the October 15th deadline. Of course the return has to be filed correctly.
- Report all income that the IRS knows about. That would include all W-2’s, 1099’s and K-1’s—especially the ones that your thought were not going to be reported to the IRS.
- Avoid the home office deduction. I have literally had to charge some clients more for the preparation of this tax form than the benefit they were getting. The home office deduction is rarely worth the tax savings and the risk of an audit. If you have a home office deduction that amount to $1,000 and you are in a 15% tax bracket the savings is only $150.
But if you do get audited, get professional help. It will pay for itself each year you file in the future and minimize your exposure for the year or years being audited.
Scott Allen E. A. – Tax Debt Advisors, Inc.
How to avoid an IRS audit in Arizona? IRS help from Tax Debt Advisors, Inc
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