Posted by taxguru on March 16, 2003
Some good pointers. I could add several more, such as:
File tax returns later – earlier filed returns are more likely to be selected for audit
Over-document out of the ordinary items – attach plenty of documentation to avoid having to go through an audit.
Avoid electronic filing – unable to explain things in the limiting format required by e-filing.
Use a Professional Tax Preparer – While this may sound self-serving, it is a fact that amateurs make many times more mistakes than pros; so IRS reviews self-prepared returns more closely.
Use a C corp to smooth out income and prevent yourself from going into the higher target upper income levels. Small corps are also audited much less frequently than 1040s or large corps.
KMK
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