Who Should Be Afraid Of An Audit?

AuditI can’t help but wonder why there are so many articles about what to do so that you don’t get audited. So much so that it is laughable.

At the very core of being fearful of an audit are common misconceptions. There is a misconception that even though you are being honest with the reporting on the tax return something bad will happen. If you are scared of being audited then you have something to hide, plain and simple. If you don’t have anything to hide then have no fear.

Mistakes

The most basic reason someone gets audited is that things don’t match up. Meaning there was wrongly reported information within the IRS tax database. For instance if your employer reports he paid you $10,000 and you put he paid you $9,999 then that is a red flag. The IRS has checks and balances within their systems that tell the two numbers don’t match up even though they are only $1 off. The solution is to be more careful and if you do get a letter from the iRS find your mistake and have it corrected.

Odds

Your chances of getting a real, full blown audit are 1%. “Last year the IRS audited about 1 percent of those earning less than $200,000, and almost 4 percent of those earning more, according IRS data” (Turbotax).Enough said. Why are you wasting your time worrying about being in the 1%-4%?

Honesty

Stop taking chances. If you keep trying to get those office deductions or charity donations without receipts, then stop marking them down on your tax return. If you are scared of an audit don’t use them.

I hear the excuse of well we make a lot of money or we run our own business we are at a huge risk of being audited.

Hire a Professional

If you truly are still scared after all the above, then hire someone to do your taxes for you. Ask your friends for recommendations and consult with the tax professional yourself before making a concrete decision.

To reiterate, if you are honest have none of the audit triggers, or even if you do, keep receipts, proof of what you have reported and hire a professional there is nothing to fear. The IRS is a reasonable bunch, they just want the numbers to be right, Uncle Sam has to get paid and for the right amounts before he hands your hard earned money back to you.

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