IRS; Internal revenue Service keeps an eye on all the taxpayers and their accounts, and if they suspect anyone of them of hiding any income or recording any unnecessary deductions, then they send an audit notice to that person or organization.
An IRS audit notice is something that no one would like to receive. If you act responsible and smart, then you can easily avoid or manage an. There are some easy guidelines that can help you to stay away from an IRS audit, and some of them are listed in the following paragraph.
Know about the selection procedure
Not everyone gets selected for an audit by IRS, so if you know how they select people, then you can easily avoid it. A unique system known as the Discriminate Income Function is used by the IRS as it compares the deductions of different people and one the basis of the IRS picks people for an audit.
So, you must have proper evidence for each deduction you record during taxation so that you can stay on the safe side in case you’re chosen for an audit.
You are an easy target
If you run a business or have a profession based on cash or you keep your books yourself, then you may be the first target of the IRS. In such a case, you must be careful while making the deductions, and you should not forget to document every minor detail so that you have proper evidence for every deduction you make.
Use detailed explanations
If you think you are under the radar of the IRS and may get an audit notice, then you must have extra explanations with evidence such as receipts, forms, etc.
It will help you to convince the IRS agent and may help you to avoid an audit. These documents will ensure the agent that everything is on record, and there is no fault.
