Being singled out for an audit can be stressful for many taxpayers, although a professional can usually handle the situation fairly quickly. Still, most people would prefer to avoid the stress and frustration of an audit in the first place. Although some reviews are genuinely random, most are triggered by tax preparation mistakes which look suspicious to the IRS.

4 Reasons the IRS Might Single You Out for an Audit

1. Calculation Errors

Most individuals and professionals use tax preparation software that will do most of the calculations for them. However, if you’re still filing paper returns or doing the math yourself before entering data into the program, double-check the accuracy of your figures. Transposing numbers, addition mistakes, and other simple errors can throw off your final numbers and potentially trigger an audit.

2. Unreported Income

If you drive for a rideshare company, build websites, or successfully trade cryptocurrency, all of your income should be reported on your returns, even if you don’t get a 1099 form. In the Gig Economy, freelance work is often overlooked when preparing your taxes. If your stated income doesn’t match what the IRS has on records, they may choose to audit your return to collect on your unpaid taxes.

3. You’re Self-Employed

Freelancers and business owners enjoy additional deductions and exemptions, so they’re usually reviewed more frequently than other taxpayers. Failure to keep accurate records or the inability to account for specific income can lead to lengthy and time-consuming audits.  If you’re self-employed, it pays to have a tax preparation professional who will help you get every deduction you’re entitled to without setting off alarm bells at the IRS.

4. Your Return Contains Even, Round Numbers

When adding up your deductible expenses and sources of income, avoid the temptation to round up to even numbers. For instance, if you’re claiming a $984.76 computer purchase, round that to $985, not $1,000. Differences of even a few dollars can trigger software at the IRS to flag your account for an audit.

Whether you’ve been singled out for an audit or need an experienced tax preparation professional to handle your returns, ZP Tax, Inc. has the tools and expertise to deliver fast, accurate results. From their offices in Silver Spring, MD, they’ve provided high-quality service to individuals and business owners throughout the DC Metro Area dealing with even the most complex tax problems. Visit their website now for an overview of their tax preparation services, or call (301) 587-4829 to make an appointment today.