Nobody wants an IRS tax agent knocking at the door and asking for a shoebox full of receipts. Unfortunately, there’s no surefire way to avoid an audit.
However, you can sharply reduce your odds of an IRS inquiry by avoiding some common mistakes when filing your taxes. Here are seven that should be on your radar.
1. Hiring the wrong tax preparer
This mistake might occur before you even get your name on the tax return. Select a tax preparer who is incompetent or unethical, and he or she could spell big trouble for you.
If the IRS audits one of the returns the tax preparer filed and finds significant problems, the agency could decide to audit all the returns that person prepared for the year, or for the past several years.
Don’t make this mistake. Read our advice on how to select the best tax pro.