For many people, the idea of undergoing a tax audit can be stressful. As such, you’re likely eager to find out what you can do to avoid one in the first place. The following guide outlines the tax planning steps you should follow to minimize your risk, as well as what you should do if you are audited. 

What Can You Do to Avoid an Audit?

The first and most important step in tax planning is to be as accurate as possible. Inaccuracies or irregularities in income or deductions trigger the electronic system used by the IRS, so if you’re thorough with your paperwork to ensure the information is correct, it can do a lot to prevent an audit. 

Next, try to file as early as possible after you receive your W-2 paperwork. Your employer should send you your W-2 paperwork a few weeks before the filing deadline. Delays in providing your documents may attract the attention of the IRS. When gathering your paperwork, triple-check all your information to ensure your documents accurately reflect your earnings. Don’t round up or down, even if you think the information might seem suspicious. As long as you’re honest, you won’t get in trouble with the government. 

What Should You Do If You’re Audited?

If you do receive an audit request, don’t panic. The best approach is to be compliant and honest. Contact your accountant to help you go over all your earnings and financial paperwork so you can submit all the necessary documents to the IRS. If the government finds you guilty of anything, you have the right to file an appeal, which a lawyer can help you with. 

The best way to avoid an audit is to invest in comprehensive tax planning services ahead of time. That’s where the professionals at Cloyd & Associates PSC located in Corbin, KY, come in. They have the knowledge and expertise needed to ensure complete compliance with the IRS. Visit their website to learn more about their practice, and call (606) 864-8110 to schedule an appointment today.