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As the tax filing deadline looms closer and closer, many people worry that if they file their taxes closer to the deadline, it will increase their odds for an audit. And many keep a watchful eye to the front door- they worry the tax man will come to their house to collect money due. (As if IRS agents want to see your entry hall and the kid’s basketball on the stairs).
You stand a better chance of having your Mother-in-law visit or your neighbor returns your long lost power drill than having IRS come to your house to collect taxes.
IRS does have a computer generated calculation to figure out who will receive an audit notice. The numbers on your return that might generate an audit are large deductions that don’t match your past years returns or not in line to your income, Please don’t over value the bag of clothing your gave to the local charity! Other “bells” that set off a possible audit are claiming more dependants than you really have, simple errors such as not signing the return, large medical deductions and not claiming income from a 1099.
So sit back this week end, take your time to prepare your return, be honest, take time to review everything, sign the return with a pen – you will be fine. But I would dust that Entry Hall table and put away those old coats-just incase the IRS collector does pay you a visit. (remember you claimed you donated that one coat to charity)
Promise me that you will start now collecting paper work and receipts for tax time 2008.
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