With the tax season already started and the possibility of getting a tax refund from IRS as soon as possible, United States citizens want to get things done as soon as possible. It’s normal to think about the stimulus check with the tax refund, but the IRS might do an audit if they see some irregularities.
And those mistakes don’t have to mean we’ve done things wrong. They may be mistakes that the IRS considers important at the beginning but that in the end are fixed in a simple and quick way. By this we mean that having an audit does not mean having to pay a penalty to the IRS.
However, it is better to avoid this type of situation, since in addition to the possible fines and surcharges in taxes we will have to spend a lot of time on it. That is why it is important to do the tax return from the beginning. We cannot send the documents quickly and without checking everything we have to check.
Actions about taxes that can cause the IRS to audit us
To avoid audits at all costs, there are many actions that we must take into account. These actions we have to watch out for whenever we do a tax filing and send it to the IRS. A mistake when filing a tax return can cause us to have problems with the tax refund. So pay attention to these common mistakes that can cause the IRS to audit us:
- Incomplete documentation. If we send the IRS our tax filing we must include all the documents. We cannot forget any form. All documents are important for our tax return. Forgetting any of them can make the Internal Revenue Service suspicious about the situation.
- Wrong numbers. Pay special attention to the numbers you put on the documents. Math errors can lead to an audit, as the IRS will carefully watch out for any documentation they receive. This means that a math error can lead to more than one problem.
- Deductions reports should be accurate. According to tax expert Lisa Green-Lewis, “If you work for yourself and have legitimate business expenses, you should feel empowered to take them. Just make sure you have receipts and documentation to back it up.” These expenses can help you, but you should always have all the documentation.
- Watch out for expenses and income. As in the previous section, having all the documentation is really important to be able to justify both expenses and income. The IRS may request an audit in case of having unjustified expenses and income, so we must watch out for that.
In short, we must always have all the documentation well filled out, as well as proof of expenses and income. Remember that you have until April 18 to file your tax return and send it to the IRS. The sooner you send it, the sooner you will receive your tax refund.