Taxes In-DepthFile taxes

taxes > tax audit advice

Tax Audit Advice

Tax audits should be dealt with quickly to avoid extra penalties.

File your return online

Avoid mistakes, and take advantage of all possible credits and deductions. Best of all, with Turbo Tax you can work on your return for free, until you file. Work on your federal, state, and small business taxes, and pay nothing until you are satisfied with your return. Start now.

Tax audit advice: three types

There are three types of audits:

  • An office audit.
  • A field audit.
  • A correspondence audit.

Most office audits cover:

  • employee business expenses,
  • itemized deductions,
  • charitable contributions,
  • moving expense deductions, and
  • income from tips,
  • rental property, and
  • capital gains.


Sidebar
Reduce the likelihood that you'll be audited by filing your return online and having H&R Block double-check it for errors.


Field and correspondence tax audits

Businesses are the primary target of field audits.


Correspondence audits deal with:

  • itemized deductions,
  • small casualty and theft losses,
  • small business expenses,
  • family credits,
  • retirement plan payments, and
  • some income items.

Be prepared to provide documented proof of your expenses.

Do not ignore irs audit notices.

Tax Audit Advice: the Tip Offs

The IRS targets people using these "tip-offs":

  • Unusually large itemized deductions
  • A home-office deduction
  • Claiming large amounts for travel and entertainment expenses
  • Large losses in a business for many consecutive years
  • Large casualty-loss deductions
  • Incorrect or inaccurate information from official documents
  • Filing an estate-tax return


Next: Types of tax audit notices.


Related tax audit forms

Get more information about responding to tax audits from the IRS - Publication 556.

For more information on your rights as a taxpayer, consult Publication 1.


Note: you will need an Adobe Acrobat Reader to view these publications, which you can get here. (But you probably already have it.)



Save $300-400 or more with discount rates from all major insurance carriers, as well as local companies. It's like getting a nice refund in April!

Tell us what state you live in:

Are you currently insured:


  


You'll get multiple quotes, all for free. It couldn't be easier.



Taxes





Site Info:





Quick Links: free tax software chooser | file taxes online for free


©Copyright 2005 Taxes In-Depth LLC


Read this disclaimer: This internet site provides information of a general nature for educational purposes only and is not intended to be legal or tax advice. We make no guarantees as to the validity of the information presented. Your particular facts and circumstances, and changes in the law, must be considered when applying U.S. tax law. You should always consult with a competent tax professional licensed in your state with respect to your particular situation.