Filing taxes is stressful regardless of what method you use and what agency you are filing to. It’s critical to ensure that all of the information is provided to the government because if there are any issues with the filing, it could trigger an IRS audit. When it comes time to do your next tax preparation, be aware of the most common triggers for an audit. Consult the guide below to learn how to avoid this situation. 

Top 5 Reasons the IRS Audits Taxes

1. Writing Off Home Office Expenses

One of the best aspects of working from home is being able to take deductions for certain expenses on your taxes. However, this can trigger an audit. That’s because the IRS has very strict standards for what qualifies as a home office. Simply returning emails from your couch on occasion doesn’t qualify, so the IRS will want to take a closer look at your work situation and business ventures. 

2. Claiming Excessive Charitable Donations

Donating to charity is a great thing to do, and that’s why the government rewards people who do so with write-offs. However, if a person claims an exorbitant amount of donations that result in massive deductions, it can trigger an audit.

3. Wrongfully Claiming Dependents

The government offers incentives for people who have a financial obligation to someone living with them, such as children. However, it’s important to follow the IRS guidelines regarding dependents when doing your tax return preparation. Agreements like split custody or children aging can affect the viability of filing this claim.

4. Failing to Report Full Income

Many people understand that their W-2 serves as a record for the income they’ve earned throughout the year, but the government must also know about any additional earned income. Independent contractors must report any money earned through their 1099 forms. It’s also important to keep track of any money that was gifted to you, earned through investments, and won by gambling.

5. Drafting Multiple Business Expense Write-Offs

Running a business requires spending money on growing the company, and often these expenditures can be written off. However, too many of these deductions will raise a red flag with the government. Keep records of everything you spend to make your case in the event of an audit. Always have physical copies of receipts or any contracts to help your tax consultant piece together your entire expense report. 

 

Correctly filing your taxes is the key to avoiding a stressful audit from the IRS. The experts at US Tax Express in Charlotte, NC, can take the pressure off by ensuring there are no issues with your filing. Their talented and highly-trained team of tax consultants provide a variety of tax services, and they will work with you throughout the entire tax preparation process to ensure your forms are mistake-free. Schedule an appointment by calling (704) 817-9517. Learn more information about their services online.