I work for tax preparers. Because of that, I am now in the process of gearing up for my Super Bowl, my Mardi Gras, my harvest season. I am eating better, drinking lots of water and getting plenty of sleep.
I am getting ready for Tax Season.
Of course, this changes my life – longer hours and more responsibilities. Come see me and I might even practice my people skills on you. While it might seem like I’m only thinking of myself right now, I spared a moment for all of you, too.
Hey! Who wants to talk about IRS audits?
So, I was wondering (I know, that’s dangerous for me and everyone else), what is it about a certain tax return that could cause the Internal Revenue Service to come sniffing around? Here are a few guidelines to keep in mind this tax season:
1) Bad math. You might forget to carry that one and, even though it’s an honest mistake, the IRS won’t see it quite that way. According to Clark.com, your silly little slip-up with “basic math errors in adding and subtracting will raise suspicions about what else could be wrong on your return.” You forgot a decimal point and now the IRS wants to know exactly how you afforded to buy that island off the coast. Nerdwallet.com suggests that taxpayers hire a tax preparer (how many times have I said that?!).
2) Failure to report all income. The general consensus is that if you think you’re being clever by “forgetting” that $10,000 1099 work you did in June, well, you’re not. You’re just not. Again, as Clark.com points out, “the IRS gets copies of all the 1099s and W-2s you receive.” Do you honestly think that the Internal Revenue Service isn’t paying attention?
3) You are either too rich or too poor. I included this one because, well, just look at that sentence. Cheatsheet.com mentions that, if you’re on either side of the income spectrum, the IRS is going to be a little curious about you. If you make too much, they kind of want to know how. If you make too little, they “might think you’re hiding some of what you earned.” I know there is really nothing you can do about this one, but I was just putting it out there. I found it surprising and didn’t want to keep it to myself.
With these things in mind, there are two routes that you can travel this tax season: Don’t file your tax return or – and hear me out – you could acquire a reputable and knowledgeable tax preparer to gently guide you. Personally, I think the second choice would look better on you, but I don’t want to tell you what to do.
If you should decide on the latter option, Bourke Accounting is a good option. Our Bourke Accounting experts know what they’re doing and, just like you, want to avoid uncomfortable IRS questions. This tax season could be the best tax season ever, if you work with the right people. Give a call and see what Bourke Accounting can do for you.
Written by Sue H.