What you should never bring to an IRS audit
Okay I know this has nothing to do really with buying mountain property
in the Blue Ridge Mountains but it was a great tip to pass on so I couldn't
resist!
The most common audit mistake is providing copies of your other years'
tax returns. Doing so greatly expands audit risk by giving the auditor
many things to look at that he otherwise would not see, like patterns
of income and deduction amounts over multiple years.
So why do people bring previous years' returns with them? Because the
audit notice ask them to!
But here is something you should know: IRS rules state that you are
required to provide ONLY the information relating to the specific tax
year listed in the audit notice. You are NOT required to provide information
relating to any other tax year, except as it might relate to the year
under audit - as carryover items might.
If the auditor ask you for a previous return, simply say, "I don't believe
that this relates to the year or issues being examined." Almost always,
that will end the matter.
Of course the best way to avoid an audit is to have a reputable CPA
do your taxes. And it is a good idea to have a great inexpensive legal
coverage such as PRE PAID LEGAL
INC that includes an IRS attorneys time
if you ever do have the displeasure of getting an audit. Many times an
audit can be avoided through a good attorney as they can claim your tax
statements a part of client /attorney privilege.
I would like to thank Bottom Line
for this useful information.
Buyer's Agent a better choice!
The Listing Agent, unless specifically disclosed
otherwise, represents the seller in any transaction for the sale of
a home. It is that
Agent's fiduciary duty to protect the
seller's position at all times. No matter what they tell you their
loyalty will lie with their selling clients. That is why you want an
agent with experience like Gary
Ward to represent YOUR interest as a buyers agent when buying
a home.
Log us into your favorite News feed reader! And get
the more homeowner tips as it comes available.
|
