Nobody wants to get audited. It is a frustrating process that drains time and requires effort. Worse, you are vulnerable to fines. If a criminal violation is discoverable, you may even wind up spending time behind bars.
Over the past decade, the IRS has decreased the number of audits it performs. That said, the seriousness of an audit remains intense. Do not give the government any avoidable reason to investigate your finances.
Causes for getting an audit
Numbers that do not add up are a surefire trigger. Admitting to making mistakes will not be enough. You need the services of an experienced professional to figure out what went wrong.
Failing to report income is another sin that earns governmental bean counter attention. Every source of money must be accountable and reported. Failing to reveal a secondary income stream could suggest extra deception.
Audits sometimes happen because too many business expense deductions are present. Claims need to be for commercial purchases only. Those that are not may make officials suspect more wrongdoing.
Too many round numbers will also cause an audit. Even figures suggest that amounts are inexact. Specificity is always required when filing taxes.
What to do when you get an audit
Remain calm, and read the notice carefully. After all, the audit you are receiving may not need a deep dive into your books. Collect all documentation and work with a tax wizard to help resolve your situation. Do not comment on what is happening, either online or offline. Remember, too, that you must file your audit before the deadline.
Getting audited is never fun, but it happens. Reduce the odds of facing one by staying on top of your tax filings.