Editor: Crass Cash
Whether you've been audited or not here's some ways to help reduce the chances.
1. Avoid bad accountants. Learn about your taxes and ask questions. Don't just sign the tax return! Be sure to check out their qualifications and search to see if they've ever been charged with anything.
2. Avoid round numbers. When your tax return looks like a score on Jeopardy this is going to raise a red flag on your return. Life usually doesn't happen in round numbers, but if in fact it doesn't show up and you have documentation, don't be afraid to use it.
3. Be leery of big changes in income.
4. Avoid outliers if you can. These are numbers that look abnormally large relative to everybody else. Your accountant and the tax filing software will usually indication what these might be.
5. Avoid rich people words like yachts and mansions. You should be discreet in life. Your financial affairs are only your concerns, not anybody else's.
1. Avoid bad accountants. Learn about your taxes and ask questions. Don't just sign the tax return! Be sure to check out their qualifications and search to see if they've ever been charged with anything.
2. Avoid round numbers. When your tax return looks like a score on Jeopardy this is going to raise a red flag on your return. Life usually doesn't happen in round numbers, but if in fact it doesn't show up and you have documentation, don't be afraid to use it.
3. Be leery of big changes in income.
4. Avoid outliers if you can. These are numbers that look abnormally large relative to everybody else. Your accountant and the tax filing software will usually indication what these might be.
5. Avoid rich people words like yachts and mansions. You should be discreet in life. Your financial affairs are only your concerns, not anybody else's.
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