Tim Abercrombie

Sunday, August 3, 2008

How can I reduce the chances of my tax return getting audited?

I would suggest taxpayers consider the following:

· Gather all of your supporting documentation. For example, you must have receipts for charitable donations made in cash or by check to a qualified organization in amounts greater than $250. Also, make sure you have documentation for unreimbursed business expenses and vehicle mileage deductions. Make sure you include all revenue received during the tax year.

· Use the tax code to your advantage. There are many deductions you may not realize you are allowed. Consider a conservative approach in areas that are not clear in the tax code. Consider using a tax professional.

· Deductions for a home office can catch the eye of the IRS: Make sure your office is a separate space used primarily for business. Other IRS flags: home-based businesses such as Subchapter S corporations and sole proprietorships that consistently lose money.

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