Its tax time again. Both individuals and businesses can be subject to the dreaded IRS audit. Statistical only about 1.5% of all tax returns are audited each year. Here are some quick tips that might help reduce your chances of being audited (Note: These tips are not in any way a replacement for the advice of a qualified tax prepared. If you are concerned about an audit seek out the advice of your tax preparer or attorney.)
1. Report all income
2. Have proper documentation available
3. Check your return for math errors
4. If married file jointly
5. Sign and file your return
6. Be certain your personal information is correct
7. Keep track of large money transfers
8. Use deductions only when appropriate
What about company gifting laws? Is it true that a company can only gift up to $500 per person each year without having to file a W-2 on the individual? For example, if I do a referral gift card for $500, does the individual I give it to have to complete a W-2 and I-9 form?
Posted by: Don | October 30, 2008 at 02:57 PM
Its a nice post about avoiding tax audit.
Posted by: Apostille | May 10, 2009 at 03:51 AM