How To Avoid A Federal Income Tax Audit - article about How To Avoid A Federal Income Tax Audit

How to avoid a federal income tax audit

The IRS uses specific criteria to determine the types of errors that will lead to an audit of your federal income tax return. The most important criteria are mathematical mistakes, accounting errors, unallowable deductions, and discrepancies between your own federal income tax return and information supplied to the IRS by your employer and bank.

If the IRS detects an obvious mathematical error in your calculations, they will send you a bill for the balance of your tax liability. Although you can’t eliminate the possibility of an IRS audit, here’s how to reduce the odds of having your federal income tax return audited:

* Double check your math. The IRS will detect errors in addition, subtraction, multiplication, and division.

* Make sure you use the right tables when you compute your tax. Mistakes will show up like a sore thumb if you use the wrong tables. Also double check the percentage of allowable deductions on items like medical expenses and charitable contributions.

* Don’t forget to attach your W-2 form to your federal income tax return.

* Make sure you attach all information required by the IRS to support deductions claimed on your return.

* If there are any conspicuously large or unusual deductions on your federal income tax return, be sure to include a detailed explanation.

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