Other than the obvious: file your return!, there are several considerations to help you in the event of an audit or to avoid an audit.
- Report all interest, even if you don’t receive a 1099 INT. You are required to report all income, even if the bank etc. isn’t required to send you a form; so do it.
- Rarely are someone’s office expenses, or household donations to charity a round number, for example: $300.00. Keep the receipts for your expenses, be realistic in your assessment of the value of those old pots and pans.
- Make sure your charity donations are to registered charities and that you deduct the value of any goods or services you receive. Remember: receipts are required.
- Take every deduction you are entitled to, just document, document, document.