How to Avoid a Dreaded Tax Audit with the IRS

Investor's

Business Daily

Investor's Business Daily

According to an article in , audits are on the rise andthe group being hit the hardest are taxpayersmaking $100,000 or more per year,which includes most physicians. In 2004,19% more taxpayers faced an audit, but awhopping 43% more taxpayers earning$100,000 and above were audited. If you'reconcerned that youmay be the next tofall under the scrutinizinggaze of theIRS don't worry, thereare several steps youcan take to prevent becominga target. The mostimportant may be avoidingcommon mistakesand not repeating mistakesyou may havemade in the past, especially if you wereaudited previously. One common mistake,according to , isnot informing the IRS if your spouse hasmade a name change. Also, watch your calculations.If there is something peculiar lookingon your return, you should attach anote explaining it, otherwise somethingquestionable, no matter how legitimate,may lead to an audit. Simple math errorsmay also set off audit alarms, so make sureyou double-check.