ASK THE EXPERTS
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.