Avoid an IRS Audit
Individuals should follow these tips to avoid an audit from the IRS, particularly if you are self-employed.
Did you know that the IRS keeps a close watch on those who are self-employed? You should be aware of what types of factors the IRS considers when deciding on to audit a taxpayer.
The IRS strongly believes that a large number of tax cheats are self-employed, making it more likely that business owners will be audited audited.
To avoid trouble, self-employed individuals should adhere to these basic guidelines:
- Don’t claim deductions unless they are legitimate
- Report all of your income, no matter where it comes from
If you are self-employed and the IRS audits you, they may request to take a closer look at your financial statements. Along with this, they can ask you to prove all of your deductions. For this reason, you need to be honest at all times while keeping accurate income and expense records.
Keep accurate records’retain receipts and copies of invoices. Maintain a journal of all of your expenses and income related to your business.