We are in the thick of tax season and everyone is scrambling to get their paperwork done. Some individuals may have started at the beginning of the year while others wait until the last minute to do their paperwork. Whichever way you do it, it’s important that the information on your tax papers is accurate and honest. It may be helpful to work with a professional on your tax returns in order to have some peace of mind that the information is sound.
Even if you did your best to be accurate, you may still end up getting an audit notice. That can definitely leave you with a nervous feeling in your stomach. You may ask yourself, “Why is the IRS auditing me?” There is no one-size-fits-all answer to that question, but there are some common issues that may trigger an audit.
For example, if you run a business and your business expenses seem a bit too personal, the IRS might have questions. They will ask if the items you paid for were necessary for your line of work and whether they are ordinary things that your line of work would need. The same goes for a home office. If you wrote off expenses for a home office but just work off your couch in the living room, the IRS may have some questions.
Finally, it’s important that your numbers are accurate. This means if you earned income, claim it. If you made a donation make sure your estimate of the donation’s value is accurate. These are all the types of issues that could get you into hot water. They may not seem like a big deal, but they are to the IRS.