Tax season is here and whether you work from home or outside the home you most likely will need to account for all of your income. Even if you earned a little freelance money. I am a blogger and work from home and that means if I earned money blogging then I will need to pay taxes this year. Keeping track of everything when you work from home or work for yourself can be tough and a huge headache. But at the end of the day it needs to be done and the last thing you want is to have all this hard work lead to an IRS audit.
Top 3 Things That Can Lead To An IRS Audit:
Not reporting all taxable income
Did you earn some cash in addition to your regular employment? You might think how will the IRS find out? Don’t take the chance no matter how tempting. Because if you got a 1099 or a W-2 from a company you worked for, then the IRS did too. Once you file your return, and fail to include one of those forms, you could get red flagged from the IRS.
Errors submitted on a tax return can and will cause the IRS to take a second look. Did you know the biggest mistake most people make is putting in the wrong Social Security numbers? The second biggest mistake is adding the numbers up incorrectly. Most times it’s safer to just hire a preparer to handle your return or help you threw the process. Again always check everything if you’re filling out your own return, and if you decide to use tax software for prepares to file, make sure you understand how to use it. Try a user friendly tax software similar to Crosslink.
Don’t depend on your tax guy
Lastly don’t think your tax guy can get you out of deep water with the IRS. You are legally responsible for all of the information listed on your tax return. No matter what a tax preparer tells you, so always make sure you look over your return closely before it’s sent to the IRS.
Top 3 Things That Can Lead To An IRS Audit
February 9, 2014 by · 4 Comments