10 Tips to Avoid a Tax Audit in Florida

Do you want to ensure you never get audited by the IRS?

Find 10 tips to avoid an audit, created by the experts at Babbitt Tax Law:

 

1. File early and on time. Not only will you get a fine for filing late, but you might send a red flag to the department of revenue.

 

1. Enter all information factually. Even a misspelled name or wrong date can get you in trouble. Check and recheck all of your data before you file.

 

1. Report your entire income. It may sound appealing to underreport your earnings, but this is one of the most common reasons why people and businesses get audited.

 

1. Be exact about your expenses. Specify your spending and use exact numbers, not estimates. Try to avoid reporting the same “cookie cutter” numbers year after year.

 

1. Save receipts, especially for large purchases. This is an important way to cover your bases, and it will make your life a lot easier in the event of an audit.

 

1. Claim deductions responsibly. Don’t overstate your tax deductions such as your mileage, wifi or charitable contributions. This is a form of tax evasion, which is a sure fire way to trigger an audit.

 

1. Avoid large differences from year to year. The IRS compares your current tax return with previous years, so be consistent and realistic about your numbers. Large gaps from one year to the next will incite further investigation.

 

1. Report foreign income and accounts. Whether your income is international or not, the IRS taxes worldwide. As a result, you need to report all forms of income from overseas. Otherwise, you’re looking for trouble.

 

1. Separate your business account from your personal assets. This benefits you more than anyone else. When you differentiate between business and personal, you have more liberty to write off certain expenses.

 

1. Find a well respected tax attorney to assist you. If tax reporting feels like a burden and you’re already busy enough, you certainly don’t want to worry about an audit. Allow tax professionals to help you.

 

Trust Your Taxes with the Experts at Babbitt Tax Law

Avoid an audit and get the most out of your tax return. Connect with Babbitt Tax Law today, the most trusted tax attorneys in Southwest Florida.

Babbitt Tax Law proudly serves individuals and businesses located in Port Charlotte, Cape Coral, Fort Myers, Estero, Bonita Springs, Naples and Marco Island.

Call us now at 239-300-9492 and connect with us on Facebook for more great tax tips.