Disappear from the IRS
Is it possible to disappear from the IRS?
It is simple and easy to avoid all trouble with the IRS. If you’re anything like the average taxpayer, you live in fear of an IRS audit. Not because you have done anything wrong, just because we all know how the government operates. Most of us know someone whom they have audited, or heard horror stories about audits. The IRS has their computers set up to spot returns that fall outside the “normal” range of deductions. Once certain entries come up outside this range the return gets a ” red flag,” and it gets kicked out to an agent to review. Other than that, the IRS runs random checks every few years just to see what they turn up.
It is absolutely possible to “disappear” from the IRS.
You know what they say about it being best to go easy on deductions? Nonsense. The flags that trip the IRS computers look for inconsistencies with the average return, so too few deductions can be just as bad as too many. So many people, sometimes acting on the advice of misinformed CPAs or accountants, overpay their taxes, believing this will save them from an audit. Big mistake.
You see, the IRS wants the easy money. They do not want to send out auditors to people who are going to fight them over every dime, and hammer out every deduction. An auditor’s job performance is judged by how much they collect from taxpayers. So when push comes to shove, they want the easy prey, where they know they can squeeze out more money. So a simple, conservative return may get even more attention than an aggressive one.
Tax Audit Lawyer
Over the years, my experience as a tax audit attorney has allowed me, John Ellsworth, to discover that there are ways of “green flagging” your tax return to sail right through the IRS computers. Not only that – you’re taking every deduction you can while you’re doing it!
To make yourself invisible to the IRS you will need to know how the IRS operates, what their computers are looking for, and how to avoid the most common mistakes they catch.
You can write off your Home Office and get away with it – if you use the tools you’re already given by the IRS. The IRS won a 1993 Supreme Court victory against home business deductions, so they’re being more aggressive with these. But all you have to do is fill out one little form, Form 8829, attach it to your return, and it will sail past the computers. (Make sure to attach a description of your business activities, and summarize the time spent and activities performed in your home office, and in other locations.)
Bullet proof your claims for business vehicle use. Keep a good mileage log of your business travel and deductions. A good log is hard for an auditor to dispute.
Breeze through any non-cash charitable deductions. If they total more than $500, just file Form 8283. You will need to accurately describe the property. Also, if your deduction goes over $5,000, include an independent appraisal of the property with Form 8283.
Have you caught the two prime keys to becoming invisible to the IRS yet?
Keeping good records and a knowledgeable tax preparer!
Contact a tax audit lawyer for advice on how to lessen your chances of an audit.