Small Biz Tip: Taxes: Avoiding the Tax Audit

Tips from Tuesday, March 31, 2009

The Small Business tips today will show you what you need to know to avoid a tax audit.

  1. At high risk for an audit: individuals with $100,000+ income: business owners, professionals & investors in partnerships.
  2. You can reduce your chances of an audit by incorporating your business.
  3. If your income is statistically lower than other people in same occupation, you may be audited for that and other inconsistencies.
  4. Don't use round numbers; they're improbable. If your deductions amount to $1456.00 use that number and not $1500.00.

Daily Overview: Maintain your records and be as accurate as possible. Corner cutting = non-compliance and will flag you for an audit!

I am not a tax professional and have attempted to condense sometimes complicated and detailed tax tips into 140 characters per line. My interpretation may not be exact. Please contact a tax professional when doing your taxes.

Some of the information above was obtained at AllBusiness.com.

Please contact the IRSonline or via telephone for all of your tax

IRS Telephone Assistance for Individuals: Toll-Free, 1-800-829-1040

IRS Telephone Assistance for Businesses: Toll-Free, 1-800-829-4933

IRS Telephone Assistance for Exempt Organizations, Retirement Plan Administrators, and Government Entities: Toll-Free, 1-877-829-5500