How to Avoid Being Audited When You’re Self Employed
The following is a guest post from Jimmy Atkinson of Ask the Advisor, where it was originally published.
The IRS states that most people who are picked for audits are selected by computer analysis, an entirely random affair. The number of audits is low, and your chances of an audit are actually slim. Plus, a knock-on-the-door visit from the IRS is even more rare- only a little over nineteen percent out of one percent of all taxpayers came face-to-face with an auditor in 2005. In fact, you may have already been audited if you ever received a letter from the IRS that informed you about a miscalculation on your return. So, audits are not life threatening, but they can be horrid if you’re convicted with criminal activity.
If you’re self-employed, your risk for audits may be higher because the IRS feels that self-employed individuals are more likely to cheat on their taxes. […]
Original post by Dane and software by Elliott Back