How to avoid an IRS audit
Tax tips to stay in the clear
- Duration 3:06
- Date Feb 19, 2013
Tax tips to stay in the clear
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Beat them a lot of Internal Revenue Service is going after the -- -- -- You could still be the target of an audit -- how to make sure that you avoid all of us we're gonna ask our personal finance expert -- Gibbons good morning gas.
-- -- you're happy face this morning.
Right number one you say do not cheat I do not -- that's that the -- -- everything you know you know 12% of filers actually admits cheating very bad idea that you doubt you've got to report.
All your income I think it gets confusing for freelancers and contractors and their missing ten K nine's tracking down -- -- Get the forms and report every penny because the IRS -- cross checking their records vs yours and if anything doesn't add up at -- any kind of discrepancy.
Red flag red flag.
I and then also when -- adopting things a lot of will deduct more than they actually yeah -- today.
Then yeah I don't deduct more than you may very I don't thank you -- -- you -- I mean that's just crazy bad idea altogether taking your income and offsetting those against -- in -- -- You know taking these crazy charitable deductions are just not proportionate to your income.
The key injuries looked exactly like other tax -- in your income bracket think when -- Yeah just you don't want to have anything stand out -- different -- usual.
That goes back to the number one point don't you OGU traffic you know down one number I I -- like that kind of -- goodwill to -- -- On number three if your self employed you need to look out what really look out here because.
Here's the thing with statistics show it individuals who are self employed -- make between 10200000.
Are five times more likely to be on and then the average employee -- we're merging -- business and personal expenses taking too -- abductions as a relate to travel entertainment.
-- really bad idea schedule -- you're taking massive loss of their people are.
That is bait for the IRS acting very careful same thing you take the home office deduction not to say you can't take it can do work from home you've got to be able to prove that -- as your primary place of business.
Use your home exclusively for business.
Or at that raises a red flag right next to them measure of the rooms and what.
I do that in the I don't think this has hit computers and if you're living in doesn't it come off exactly exactly -- triple check your math mistakes that's -- missile -- -- -- I mean no doubt that IRS it does it'll cash -- these days with the historic data that they need the money.
But even said your chances of being audited are still you know a little over 1% higher for higher income individuals -- big target these days on -- have been rising in the numbers -- -- -- Still -- and even so.
Math is a big.
-- got a problem here because people are just not doing the math correctly or they're taking on exemptions are defections are.
Some other such and that comes back to haunt you if you doing your taxes alone as some of -- still are these days.
Double -- triple check everything because.
That's when this is why a lot of people prefer to do it electronically because it checks -- -- for you do you recommend detection at three yes well the area and it's also less than 1% and file electronically vs 21% prepare to return so.
If you're filing electronically -- lowering the odds of actually getting out -- in the first place tomorrow sense it's -- granted by Barry Gallup can't believe it's tax time again don't -- I don't.