There’s nothing better than the feeling of relief you get when you finally get your taxes over and done with. You can sit back, relax, enjoy a cup of coffee, and be relatively stress-free for a few days doing whatever it is you do in your New Jersey home. That is until you get an audit from the IRS. Not only is it extremely stressful, but it is also time-consuming especially if you do not have good record-keeping practices. So how do you avoid getting your tax return audited? Well, the best way would be to hire an accountant for tax services in Kearny, NJ in the first place. But if you want to know more tips on how to avoid a tax audit, read on.
- You Should Report All of Your Income
All taxpayers need to report all of their income, including trades, stocks, or cryptocurrency transactions. If you think you can get away with leaving some out of your report, trust us when we say that you are wrong. Remember, audits are very real and they shouldn’t be taken lightly. So to avoid making a mistake or deliberately leaving things out of your report, hire a professional accountant for tax services in Kearny, NJ instead.
- Double-Check Your Figures
Take extra care with your data entry because mistakes can be very suspicious for auditors. Figures that don’t match, after all, are a big red flag signaling that something is wrong. But although this is one of the most common red flags for auditors, it is also easily preventable. All you have to do is double-check everything. Don’t just rush through filing your tax return without making sure that everything is in order.
- Make Realistic Deductions
Any unrealistic and unusual deductions will raise a red flag for auditors. To avoid this, you should find out what tax deductions you qualify for and ask for advice from your accountant. If you don’t have an accountant, you can book an appointment with one for this purpose.
- Avoid Filing Consecutive Years of Losses
As a business, you can’t keep filing reports that you’ve had losses year after year. This is especially true if you have no other sources of income. If you do this, you will inevitably draw the attention of the IRS.
There are many more ways on how to avoid a tax audit from the IRS, but the most important thing is for you to be honest and to keep clear records of your transactions. If you have trouble with keeping records or you have difficulty filing tax returns, maybe it’s time to acquire accounting services in Kearny, NJ. Nicholas J. Coco, a Certified Public Accountant, will gladly help you with your dilemma. With him, your business and your records will be in safe hands.