Tips to Avoid an Sales Tax Audit

An income tax audit, sales tax audit can be one of your most scariest tax moments. The worse cases can end in a jail cell. Even if you haven’t done anything wrong, there are always possible mistakes that could have been made in the preparation of your last filing. The IRS will go through your records with a fine-toothed comb. If there are discrepancies, they’ll find them. Their job is to review every number.

One of the most important things you can do when facing an income tax audit, sales tax audit is to communicate with a tax lawyer before ever speaking to the IRS. Before you provide the government any tax documents or even have a conversation, speak to a qualified tax lawyer to first consider your options. Most tax audits and criminal investigations by the IRS never go anywhere unless the wrong thing is said. A tax lawyer knows the language of the IRS and will work to protect you.

It’s also very important to consult a tax lawyer as oppose to a tax company. Any communications to a tax company are subject to review by the IRS or a tax court. Conversations that take place between a lawyer and his or her client, however, enjoy the right of attorney-client privilege and retain the right of privacy.

The easiest way to avoid problems with the IRS is to not attract attention that encourages an audit. When filing your tax return, always make sure it looks neat and professional. This avoids raising the eyebrows of the IRS and attracting attention to your return. Make sure the math is correct, and avoid clean numbers like $500 or $200 to qualify expenses. This suggests you might be merely estimating or guessing, which could encourage the IRS to further investigate with an audit.

Also, don’t file early, or at least no earlier than a week The IRS has three years to decide to audit your return. Filing early not only gives them more time; it potentially gives them something to do during the less busy part of the year before April 15. When you file closer to the date, your return is combined with a sea of other returns. In fact, when returns are filed close to the deadline, less than 1 percent ever sees an audit.

Avoid an audit with a neat return filed close to deadline. If an audit becomes a potential reality, however, speak to a qualified tax attorney as soon as possible.