All citizens of the United States know that they must make annual payments of their mandatory taxes to the IRS. It is not possible to avoid this type of procedure, since paying taxes is necessary and is also an economic good for the country.
However, it is true that not all citizens know all the details about the IRS and the tax returns they have to file annually. And it is for that reason that sometimes we find inaccuracies in those same tax returns. Most of the time, the taxpayers themselves do not make those mistakes with the idea of defrauding.
But we must keep in mind that the ultimate goal of the Internal Revenue Service is none other than to collect fair taxes, so this Administration must protect at all costs that no one makes any kind of fraud.
However, just because the IRS audits you does not mean that you are doing things wrong. It does mean that the IRS may be suspicious of activities when they do an audit, but sometimes they only do it to confirm that everything is in order.
The 4 actions that can trigger an IRS audit
With these 4 concepts to keep in mind when sending our tax return to the IRS we do not mean that it is mandatory to avoid these actions. In the event that our tax return includes any of the following, we should not hide it.
- Avoid excessive credits or deductions compared to income. We must maintain a balance of monthly income and expenses. This is not only to avoid an IRS audit, but also to avoid problems in our personal finances.
- Unreported income. Even the smallest income is important to the IRS. For that reason, we should never forget to file taxes on all the income we have throughout the year, whether it is Social Security or not. All income must be reported to the IRS when you file your taxes.
- Watch out for refundable credits. For some time now taxpayers have been able to receive tax credits with zero balance due. For this reason, the IRS is watching out for this type of income.
- Round numbers are not real. It is very difficult for our income and expenses to really be round numbers. Avoid this at all costs, although if we really have any such income, we should add it. It is a huge mistake to add round numbers in the case of not knowing exactly the amount of income or expense.
In conclusion, always keep all the receipts of income and expenses that you have throughout the year. This will be of great help to you when filing your IRS tax return.