Taxpayers should know which mistakes could lead to an audit

In general, the reason tax filing season is such a big source of stress for many people across the country, is that they want to get everything on their filing documents exactly right so as to avoid triggering an audit from the Internal Revenue Service while also maximizing their potential returns. As such, it might be wise for consumers to do all they can in studying up on the reasons that the IRS might decide to audit anyone can be a wise move at this time.

One of these issues is largely unavoidable, according to a report from the Idaho State Journal. For instance, consumers whose incomes are $200,000 per year or more face a far larger chance of being audited, regardless of other information in their filing. Fortunately for most Americans (in this regard, at least), they do not fall into that category.

On the other hand, things claimed as deductions will often lead to the IRS deciding to begin an audit, the report said. For instance, those who take sizable itemized deductions may prompt the IRS to take a closer look at their filings, as will any investment income that wasn't claimed on the tax forms. Interestingly, consumers who make home office deductions could see such issues arise, because there are very stringent rules for what does and does not qualify for the benefit; if a room or part of a home has any other use besides being a home office, the IRS will almost certainly not allow such a deduction.

Other issues that can arise
Consumers might also be faced with an audit based on how they claim charitable deductions or business losses, because the IRS will want to make sure that these are legitimate and evidence to back these claims exists, the report said. This is also true of medical expenses.

Finally, consumers will want to make sure that they're filling completed returns, the report said. While this may be common sense, incomplete returns are still submitted quite often, and as such can certainly lead to a closer look from the IRS.

Those who want to make sure they're minimizing their chances for being audited may want to work with a reputable tax professional to make sure all aspects of their documents are as they should be.

For a more in-depth look at Liberty Tax Service, visit the Give Me Liberty! Magazine. Follow Liberty Tax on Facebook and on Twitter or contact Liberty Tax directly at 1-877-at-Liberty.