Audit Proof Your Tax Return

No one likes the stress involved when your tax return is under the audit spotlight. Here are some ideas to avoid some of the more common audit triggers.​

• Report everything that has an informational tax return. If you are like most Americans, you will receive numerous 1099s and W-2s in the mail. The IRS receives them too. If your tax return does not meet or exceed this reported income you can count on receiving a notice from the IRS. Some hints:
• Make a list of the forms received last year
• Update the list with any new vendors or employers
• Check off each of them when you receive them
• Match the reports…even when they are wrong. When reviewing your tax return make it easy for the IRS programs to match what is being reported to them. If an amount on a 1099 or W-2 is incorrect, try to get it changed before you file your tax return. If not possible, report the incorrect amount (so it matches the IRS records) and then correct it with an explanation.
• Get your key information right. Social Security numbers must be valid. Names must match Social Security numbers. Mis-matches here are sure to be noticed.
• Get your dependents right. You and an ex-spouse must consistently report your dependents. Both of you cannot claim a child as a dependent. If an ex-spouse claims paying you alimony, it must match alimony income on your tax return.
• Get your documents in order. While the chance of being audited is historically low, it is expected to rise with all the recent hires at the IRS. Your best defense is to be prepared. So act now to organize your tax records. That way if you are audited, you will be ready to defend your deductions.

"Tax Tips" are published to provide current tax information, tax-cutting suggestions, and tax reminders. If you would like more information on anything in "Tax Tips," or if you'd like to be on our mailing list to receive other tax information from time to time, please contact our office.
 
The tax information contained in this site is of a general nature and should not be acted upon in your specific situation without further details and/or professional assistance.
 
We are trusted CPA advisors servicing Burr Ridge, Hinsdale, Willowbrook, Darien, Naperville, and all Chicagoland area. 

Do you need assistance with your business and/or personal tax returns? Would you like to have a trusted source for your accounting, allowing you additional time to focus on increasing your business? Do you use QuickBooks, or plan to in the future, for your accounting? We include these in all our service packages, customized to fit your personal or business needs.  
 
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For more free resources, such as Tax Organizers, and Record Retention Schedules, access our website www.monarchaccountinggroup.com.

Mia Verc, CPA;  Janice Papais, CPA