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Filing Early Tax Returns? Here's How to Avoid An Audit

 
Filing Early Tax Returns? Here's How to Avoid An Audit
Posted January 31st, 2014 @ 4:14am by KTRH’s Cliff Saunders

It’s that time of year again. Some of you have decided to file your tax returns early so that you can get your refund check early. But if you’re not careful, you can wind up in the IRS’s crosshairs.

If you want to avoid an audit, the first thing you want to do would be to stop playing fast and loose with your deductions.

“They round all their numbers. For instance office expenses for 200 dollars,” CPA Bob Fumagalli told KTRH.

Fumagalli says if you round your numbers off too much, the IRS is going to take notice. And you might get a letter from the tax man asking you to explain yourself.

But there are other mistakes you can make. Believe it or not, one of those is giving too much of your money to charity.

“You have to have an acknowledgement letter from an organization if you gave them over $250 for the year to support the deduction,” Fumagalli stated.

And you could always find yourself in trouble for trusting the wrong person to do your taxes. But Fumagalli has a way to fix that, too.

“You can go on the IRS’ website and check out an individual calling himself a preparer and see all the information the IRS has on him,” Fumagalli explained.

Other things you need to look out for as you get your stuff together include typos. Because that can trigger an audit, too.

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