Editor:
Scott Gottlieb, CPA
Assistant editor: Susan A. Maffetone, CPA
A
Quick Comment on Audits
Many,
make that most of my clients feel that a visit to the dentist
is considered a treat as compared to being audited by the IRS.
Most
people will never get audited in their lives. According to the
latest statistics the government published - about 1.28% of
the individual returns filed for calendar year 1996 were audited.
To avoid an audit happening to you, you can review your return
before you file it and see what stands out,
One
thing clients sometimes feel is that they should not take legitimate
deductions just because it'll stand out on their returns. I
recommend they take the deduction and be sure to keep supporting
documentation with a copy of the tax return. Of course, if the
deduction stands out, you may receive an inquiry from the IRS.
That's why it's important to hold on to receipts to prove you
really incurred the expense. If you have a single large deduction
on your return for which you have a receipt or other documentation
giving evidence of the expense, consider attaching a copy to
your return.
Consider
engaging the services of a tax professional if your return includes
complicated issues or risky deductions. You have the power to
authorize an attorney, a CPA, or an enrolled agent to represent
you at an examination and you don't have to be there. If you
are looking at penalties and taxes adding up to a large amount,
it's probably a good idea to get a professional involved early
on.
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