Reduce Your Chances of An IRS Audit

3 Simple IRS Audit-Reduction Tips… AVOID E-File! It was created to audit you better, more efficiently, cheaper. A former IRS commissioner called it, “State of the art auditing”. Using E-file is like putting your head in the mouth of an alligator, whose name is “IRS”! Instead file the computerized paper forms and mail them, making it more difficult for the IRS.

NOTE: Recent legislation states after December 31, 2010 (2011 on) returns are mandated to be filed electronically by most tax preparers.  But there are no penalties or sanctions for failure to comply. So if you have a tax preparer, insist they not do it. If you do your own taxes, you do not do it.

FILING EXTENSIONS reduce audits because late extended returns go in a later batch that may be past the quota for audits. Extensions have other advantages – so DO them! AMENDED RETURNS for refunds of past over paid taxes …often tend to get audited less, provided the amended return is done right attaching back up tax law cites and supporting documents. Otherwise they can be more prone to an audit – so do them RIGHT!

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