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How to avoid a tax audit

On Behalf of | Dec 28, 2017 | Sales Tax |

While Maryland residents may sometimes worry about the chances of being audited by the IRS on their taxes, the chances of it happening are actually rather small for most people. However, those who would like to keep their chances even lower may want to engage in some practices that keep them off the radar.

Those who wish to avoid an IRS audit will want to be completely honest while filing their taxes. Filers should ensure they report all of their income accurately, along with deductions and credits. Additionally, filer should ensure that, when documenting their itemized deductions, those deductions are realistic.

Those who are doing their own taxes may even raise red flags for the IRS accidentally, even if they are being honest. The process of filing taxes can be complicated and confusing, and it’s easy to make errors in data entry. This is one of the most common reasons for audits. Thus, it’s important for filers to double check their numbers carefully. They may even find it beneficial to file taxes online with e-filing. It can make the process easier and can greatly reduce the chances of making errors.

Even those who are careful to file their taxes honestly and within the law can find themselves faced with internal tax problems, such as might be the case if they are audited, if they are out of the country or if they have criminal proceedings causing issues. These individuals may find it helpful to speak with an experienced tax lawyer who could help them understand their options.