Avoid an Audit!

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.
Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s