Question

Making you return IRS proof

Overview

The IRS audits a select number of tax returns each year. A taxpayer can reduce the chance of audit by following a few simple rules.

Explain why being accurate (meaning all your numbers add and subtract accurately) on your tax return is important to minimize your risk of an audit

Answer 1

A taxpayer can reduce the chance of audit by following a few simple rules.

1. Be right & accurate number: - Generally use right & accurate number while filling the tax form do not try to get round off Ex .:- 17005.6 do not wright 17000 only.
2. Check the calculation: - While filling the form first calculate the whole number in excel sheet once verify than put the right number in the form. Many time we calculate the wrong.

Ex:

Principal	16500
Life insurance	44494
Total	60994

Fill the 80c – 60994.

3. Fill the form on Right time:- We have to plan the proper tax filling on time do not wait or ignorance the date of submitting the form. We have to pay the taxes on time to avoid the penalty, Even to get the fund return tax payer must submit time return.
4. For cash handling business taxpayer: If taxpayer working in the field where mostly done the cash transaction , so taxpayer must keep the record of all miscellaneous transaction to avoid complications.
5. Attach explanation:- If taxpayer had done something big transaction then the last year then he should attach the proper sheet or receipt to understanding and to avoid the audit process..
6. Avoid the correction in return: try to avoid the amendment in the return form to raising question ,fill the accurately first time.