The following tips can help you avoid IRS Problems:
- Avoid math errors. Have a professional prepare a clean and neat return.
- Avoid Schedule C. Sole proprietorships are the most highly audited return filed. If you cannot avoid Schedule C, then be careful of deductions that raise audit flags. These items include large amounts in automobile expense, meals and entertainment expense, and depreciation of personal use items such as computers or automobiles. Taking an aggressive approach on these items may not be worth the risk of an IRS audit.
- File your federal income tax return on time. Avoid extensions of time if possible. If you are already late, get the return filed as soon as possible, and pay off your tax quickly. You will reduce IRS penalties 4-1/2% per month by filing quickly, even if you cannot pay right away.
- Explore the possibility of abatement before paying IRS penalties.
Don’t pay the IRS until you talk to us.