Red Flags on Your Taxes: Things That Make the IRS Jump

It isn\’t rare to hear about someone who was unpleasantly surprised by a sudden IRS audit. They don\’t know what issue with their taxes made the IRS investigate them, and are therefore confused and frustrated with the situation. Well, aside from the confusion and frustration, some tangible outcomes might result from such investigations, like confiscation of property and even imprisonment. Almost sardonically, all this can sprout from innocent mistakes that taxpayers don’t even know they\’re making. Sure, a Dallas tax attorney can enlighten you on what you did or didn\’t do that was wrong in the eyes of the IRS, but by then you\’d already be in trouble and getting out of the mess would entail effort, time, and money.

So why not learn about the unnoticeable red flags that you could be unknowingly putting up to tempt the IRS to call an audit on your taxes beforehand?

Evidently, one of the worst things you can do is to keep the IRS out of the loop-concealing details and not stating them in your tax forms. Always, always keep the IRS in the know. A lesser version of intentional concealment is neglect. The simple mistake of not paying attention to the details of a tax form or not paying attention to when you\’re supposed to file it can become red flags. And though we call them \”lesser\” versions, that doesn\’t mean they won\’t get you into trouble.

Always fill out all appropriate parts of your tax forms. Tax problems are often caused by insufficient detail in tax forms which would then lead to IRS audits. The same can be said for late filing. Some people get IRS problems simply because they didn\’t take the time to read or accordingly respond to IRS notices. And they didn\’t even owe the taxman anything. Notices regarding late filing or other aspects of filing your tax forms that you usually neglect should be given due attention.

Another thing that can cause tax problems are the amounts of income you indicate in your tax files. Too many zeroes in your indicated amounts might cause the IRS people (and computers) to think that you\’re rounding them up to leave some parts of your income unaccounted for. Now if you simply rounded them up because you don\’t know the exact amount or you were estimating-don’t stick to that practice. Always know the amounts you earn. Keep invoices or receipts and keep them well documented or in file for reference.

Keeping track of everything might be a taxing task, no pun intended, but doing so could keep you from headaches regarding tax and the IRS. For instance, your income for this year is higher than last year and lower than the year before that, and you didn\’t bother to provide supporting documents to show why-well, then the IRS would find out on their own. Fluctuations in income entail corresponding fluctuations in income tax, and an IRS computer can easily pick it up and register it as an anomaly instead of an innocent fluctuation. So actual IRS personnel can label the fluctuations for what they are, provide the documents to support it.

IRS problems could easily be preempted given proper attention to detail and an earnest effort to file your taxes correctly. It isn\’t that the IRS are hot on your tail trying to pin whatever dirt they can on you, it\’s just that they need you to be exact, precise, and well-documented.

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Author Bio: Seomul Evans is SEO consultant specializing in Attorney Marketing. Visit the sites to learn more about Dallas IRS Attorney and Dallas Tax Attorney.

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