It is tax season, and if you haven't filed your return yet, there are some steps you can take to help avoid a letter or even a visit from the IRS.
Kevin Myeroff with NCA Financial says overall, only 1% of taxpayers will be audited each year, and offers some advice to help avoid an audit.
Report all of your income: This mostly applies to money that isn't already being reported to the IRS. This includes things like money that is won at a casino,
Don't exaggerate on charitable deductions: This applies to donations of items. For example, if you bought a TV ten years ago for $1,000 that can be replaced for $150 dollars today, you can't deduct the $1,000. You an only deduct what the thrift shop would sell it for today.
Watch what you tweet: If you are audited, the IRS will check your Facebook, Twitter and any other social media accounts you have.
Don't include personal expenses in your business: The IRS is very detailed when it comes to back checking your reported business expenses.
Don't try to write off a hobby: Businesses are meant to make money. If, over time, the IRS notices lost income on something you report as a business expense, it will raise red flags. If you continuously report losses, they will view this as a hobby.
Use tax software to prepare your tax return: The biggest mistakes people make when filing taxes are math related. Using diagnostic software that calculates the numbers for you can help you avoid errors.