Los Angeles Accountants Tell: How Not To Red Flag Yourself For An IRS Audit

One thing that most people fear is an audit from the IRS. There are certain things that you can do to avoid red flagging yourself so that the internal revenue service, according to CPA Los Angeles firms. You can get advice from an accountant Los Angeles when you are doing your taxes as well, so as to avoid any red flags popping up that might cause the IRS to take a second look at your taxes.

According to Los Angeles Accountants, things that can signal an audit for the IRS and red flag your return are as follows:

Using Your Home As An Office

Those who claim a home office have more of a chance of being audited than anyone else. There are certain deductions that you can take for a home office, and those that you cannot take. You have to be sure that your home office falls into the guidelines by the IRS. You are better off to have a tax professional handle your return if you are claiming home office expenses.

Too Many Charitable Donations

Claiming too much in charitable donations is another red flag for the IRS. This is especially true if you have not claimed such deductions in the past. The IRS may wonder why you have suddenly become so charitable. If you claim these deductions, then you should be sure that you can back them up with written proof. If there has been a sudden increase in charitable contributions, it is a good idea to have a tax professional go over your return.

Sudden Decrease In Income

If you lost your job, it may be understandable if you have lost income. However, if you are self employed and suddenly have a drastic change in income, then the IRS will most likely red flag your return. Self employed individuals are more likely to be audited than anyone else and having a decrease in income can signal an audit, according to Los Angeles Accountants.

A Sloppy Return

Filing a sloppy return or one that contains many errors may get the IRS to wondering just how careless you have been in other areas of your life. You should be sure that you take the time to file a clean looking return so that you do not inadvertently cause yourself to be audited.

Sudden Increase Or Change In Dependents

A sudden increase in dependents or dramatic change will also get you audited by the IRS as well, so says Accountant Los Angeles firms. If you are claiming an increase for legitimate reasons, then be sure that you have all of the paperwork to back it up.

Being audited by the IRS can be a frightening experience for most individuals, who seek to avoid this type of circumstance at all costs. By making sure that you have all the documentation to back up your tax return and by using a tax professional to do the job, you stand less of a chance of finding yourself under the microscope of the IRS.

Resource:

Take a tip from Los Angeles Accountants when you want to avoid being audited by the IRS. A CPA Los Angeles can help you avoid an audit by making sure that your return is done right. To find out more about an Accountant Los Angeles go to CPALA.com.