Avoid Being Audited By the IRS

While the IRS is conducting fewer audits than they used to, it is important to avoid raising red flags. Here are some important points to remember.

  • Report all of your income- including any side jobs. The IRS receives reported income from all of your employers, so they know if anything is missing.
  • Avoid high write-offs. The IRS has a formula they use and looks for any outliers.
  • If you are audited, respond by the date provided. Audits are usually sent by mail. Make sure to provide the requested information on time.

Interestingly, low-income families tend to be audited more often. Pay attention to the points above and check out this article for more information.