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.