National Debt Relief Shares Tips To Prevent Tax Return From Being Audited

March 20, 2015 - National Debt Relief recently shared in an article published March 9, 2015 how consumers can prevent their tax returns from being audited. The article titled "8 Tips To Keep From Having Your Income Tax Return Audited" shares some valuable tips to ensure that consumers are filing their taxes correctly.

The article start off by explaining that even though the government has made it clear that fewer people will be audited this year because of funding cuts to the IRS, it does not mean that people can take a laid back approach in filing their taxes. Being audited is still a possibility and and it is nerve racking to be assessed with thousands of dollars worth of tax payments.

One of the things that consumers need to do is to show proof that they indeed run a small business. The IRS may forgive declaring a loss for a few years but anything more than that, the IRS may begin to suspect that it is more of a hobby than a business. This can prompt a field audit and which is more stressful than an audit by correspondence.

The article also stresses the importance of reporting all income sources to the IRS. This can include income from employment, income from dividends, capital gains or interest from any transaction. The reason for this is because the IRS uses a program that matches these forms to submitted return and flags any differences between what was submitted to them and what was reported to the IRS. If the program finds any discrepancies, this will trigger what's called a correspondence audit.

Coming clean with fund overseas is also another tip in preventing an audit from the IRS. This has always been a requirement but the new Foreign Account Tax Compliance Act can have foreign institution where American citizens have money report the information to the IRS just as any brokerage or bank in the US would. Again, any discrepancy can trigger an audit form the IRS.

To read the full article, click this link: http://www.nationaldebtrelief.com/8-tips-to-keep-from-having-your-income-tax-return-audited/