Individuals and business owners generally try to avoid audits at all costs. There are some tips to keep in mind for people who wish to steer clear of audits. It is important to note that no tips can completely exempt an individual or business from being audited; some audits are scheduled randomly. These tips are useful for helping individuals and businesses remain above suspicion so that they are not scheduled for an audit based on suspect tax returns.

Individuals and families who prepare their own taxes should ensure that they follow all directions closely. Failure to do so may result in tax returns that arouse suspicion with Internal Revenue Service (IRS) officials. Although the mistake may be a simple matter arising from confusion, IRS officials may look at it askance and suspect that the taxpayer is attempting to swindle the government. Audits can result from such suspicion.

When preparing taxes, individuals should request help when they need it. Whether they are confused about a broad tax issue or a minute issue related to a specific detail, they can seek help on the IRS website, through a community-based tax assistance program, or from a tax preparation agency. Additionally, individuals who do not feel that they can adequately prepare their own taxes should seek the assistance of an accountant. In this way, they can ensure that all of their tax documents are prepared correctly. Again, this does not totally preclude individuals from audits, but it reduces the likelihood significantly.

Regardless of who will prepare the tax documents, the individual should save any paperwork that might possibly be relevant to tax preparation for inclusion and submission if necessary. This includes all receipts for anything that might be included, as well as payment stubs, certain bills, and other documents. It is easy to save these documents throughout the year; the individual can simply place them in a box or folder and file them when tax time approaches. It can be difficult – or even impossible – to recover documents after the fact. Saving them is always the safer choice.

It goes without saying that individuals should avoid any temptation to cheat on their taxes. People who mistakenly believe that they can illegally reduce the amount they owe the government – or even avoid paying taxes altogether – may inadvertently raise red flags when they prepare their taxes. In their eagerness to save money dishonestly, they will usually make some small mistake that will provide a tip off. Such mistakes lead to automatic audits.

The same tips are useful for businesses, as well. Depending on the size and scope of the business, tax documents may be significantly more complicated than they are for an individual. In addition to the above, businesses must also ensure that they follow Generally-Accepted Accounting Principles (GAAP). These rules govern the way that all business accounting is conducted. Failure to follow them will cause suspicion with IRS officials.

There is no guaranteed way to avoid audits. There are ways to reduce the likelihood of audits, though. The aforementioned tips provide a great foundation for preparing and submitting tax documents properly with the goal of avoiding audits.

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