How Do You Prevent A Tax Audit?
Many people are scared of tax audits. Horror stories abound as to what the Internal Revenue Service has done to people–seized all their possessions and sold them, or even worse, put someone in jail. Sending celebrities to prison for tax evasion is always publicized, usually around the April 15 tax time. But the fact is that only a tiny percentage of people are audited: Less than 2 percent of tax returns are selected for an audit. But there are a few simple things you can do to reduce your risk of being audited. File a joint tax return if you are married. One of the reasons is that if each spouse files an individual tax return, there may be duplicate deductions on each return. If you and your spouse file separately, you each increase your risk. Check your itemized deductions carefully. Each income bracket has average expenses as determined by the IRS. If you deductions are too high for the income you are reporting, the IRS will notice. Declare all the income you earn. Everything you ma
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