How To Avoid IRS Tax Law Problems And Stay Under Their Radar?

Every year millions of Americans either don’t file their taxes at all or lie on the forms in order to pay less money. While the IRS is constantly having their budget reduced due to certain political events, they still have very powerful computers that automatically perform audits and send out letters to those that they believe need to make some kind of adjustment. Most of these automated audits can be avoided by knowing what not to put on your tax forms, but once they’ve started to take a serious look at your tax filings you should take heed and correct the situation immediately. Here are some tax law IRS hints to keep you under the radar.

Always File On Time To The Best Of Your Ability

In our busy lives we have thousands of things to do every single day and only accomplish a tiny fraction of them, however, filing your taxes should be right at the top of the list. Being late, or not filing at all, will send up a red flag and get their attention but not necessarily in a good way. No matter what other things you have going on in your life you do have the time to do your taxes, don’t watch the Super Bowl or play golf, or whatever. Avoid their attention if at all possible.

Keep in mind as well, the IRS has all of your W-4s, 1099s, and every other document that has been sent to them plus their computer will have calculated what it thinks you owe without subtracting any of your expenses. So when they send you their form letter that says you owe $50,000, don’t panic, that’s just what the computer thinks without any input from you. If you sold a home in that year and received a 1099 saying that you were paid $200,000 for it, that wasn’t all profit but the computer will automatically think it is. Of course, you paid money for the house as well and that needs to be subtracted from the total along with the costs of realtors, certain improvements, and other fees. So don’t panic, take care of business and you should be fine.

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