The thought of an audit by the Internal Revenue is extremely scary for most people. In some cases, it means that the government has suspicions that you have not been completely truthful on your tax return. The good news is that there are some ways that you can know if you are at risk for being targeted for an IRS audit.
There are a few basic factors that will trigger the IRS to tag you for auditing. The first one is simple – your total income. If you have an annual income over $200,000, then the chances of you being audited are automatically increased.
The IRS is also going to take a look ab your deductions and charitable donations. If everything does not add up, chances are they will want to take a closer look. At this point, preparation is key. You should ensure that you always file the proper forms for all of the donations that you make or deductions that you claim. For example, if you have a charitable donation that is more than $250, you must have a letter from the charity that explains the gift. Without this paperwork, the IRS is not going to believe you, or allow you to use it on your return.
Another common factor that increases your likelihood of an audit is if you have a second home that is rented out occasionally. There are specific rules regarding how much is able to be deducted based on the number of days that the property is actually rented. The IRS watches this closely.
If you own a business, you may also be of interest by the IRS. It is extremely easy for business owners to fib on their tax returns, which is why the IRS is more than willing to take a deeper look if anything seems amiss.
These are just a few of the reasons that you may be targeted by the IRS for an audit. No matter if you are truthful on your income or not, hiring IRS Tax Lawyers in Atlanta can help you understand your rights and responsibilities in an audit situation. They can also help you to understand the consequences that you are facing due to the audit. Click here to find IRS Tax Lawyers.
An IRS audit is a serious matter, and it is in your best interest to hire IRS Tax Lawyers Atlanta for help, such as the services of Jeffery L. Cohen, who understands tax laws and the audit process.