Tax audits from the IRS are on the top of many people’s lists of worst-case scenarios, but there are some reasons that put people at greater risk of being audited. While there’s no fool-proof way of ensuring that you’re never audited, there are some ways that you can reduce the likelihood of receiving an audit in the Seattle, Washington, area.
Deductions that can cause the IRS to audit your tax return
One of the most likely reasons that a tax return could get flagged for an audit is if the claimed charitable contributions are really high. While there’s no reason to fail to claim the value of what you donated in any given year, there’s a rubric for how much you can claim before the IRS might get suspicious.
Business deductions are another potential place that you could get flagged. Again, like charitable contributions, you should fall within a certain limit to avoid getting an audit. Finally, medical expenses that seem out of line could get your tax return flagged, so know the tax law before you submit your returns.
While there are times when you might get audited for taking too many deductions, there are also honest mistakes that could send up a red flag and cause the IRS to look at your return more closely. For instance, if you file your taxes using pen and ink, you might be more likely to get audited if your tax returns aren’t legible. It’s simple enough to fix if you have all of the correct information, but it can be a hassle that you don’t want to deal with. Mathematical errors and unreported income could also lead to a tax audit. People sometimes make mistakes because they’re rushing and forget to add in a 1099, which will flag the system.
If you want to avoid common mistakes and other reasons that your tax return might be flagged for an audit, make sure that you take time on your taxes. You should also ensure that you have someone that you trust look over your taxes if you’re ever in doubt about whether or not your taxes have been done correctly.