7 Warning Signs NC State Will Audit Your Tax Return
1. Your Income Is Cash Based
Do you usually deal with cash? Are you in a service industry or perhaps the restaurant business where you often get tips? You might find yourself in an audit with your tax return. The tax office will make sure you calculated all your tips and other cash funds correctly. This will lead to your NC state refund status undergoing a delay.
2. You Claimed Business Deductions
Your state tax office will be more likely to check your return for an audit if you claim business deductions. Every year businesses around the country try to squeeze in various deductions that don’t make sense. The tax office will most likely want to check your return. This can delay your NC state refund status funds.
3. Your Business Deductions Aren’t Reasonable
Like stated above, if you try and put in business deductions that are unreasonable, you’re going to run into problems. It could lead to an audit and a delay on your NC state refund status funds. If you review your calculations and they seem awfully high, you’re probably going to get noticed.
4. You Missed Receipts
Speaking of deductions, make sure you have all the paperwork that goes with them in case of a double check from your state’s tax office. States are cracking down on deductions and such, now more than ever. If you don’t recheck your receipts, you may find yourself in the middle of an audit and a delay in your NC state refund status money.
5. You Miscalculated
Did you check all your calculations on the tax return? Any errors can lead to a big audit from your tax office. This can lead to a huge delay with your NC state refund status funds. Make sure everything is up to speed on your tax return. Check it at least once, preferably twice.
6. Your Refund is Delayed
If you keep looking for the money from your NC state refund status and it never arrives, then you might have been hit with an audit. This isn’t always the case, as North Carolina has had budget problems the past few years. This may be the cause of your delay. However, this could be a warning sign your return is getting a look over.
7. You Owe Back Taxes
Owing taxes to your tax office can flag you for an audit as well. Anything that makes you stand out as a taxpayer can be a problem. This includes owing the office money. They may check all your tax return information and lead to a delay in your NC state refund status.