Hamati Bookkeeping and Tax Service is a local Napa and Solano County Tax Preparer you can trust.
Are you considering preparing your own tax return? If you think it is a good idea, you might want to think again.
There are many tax software options out there that may be tempting to many as a way to save a few bucks in the preparation of your tax return. There is simply no substitute for having an experienced and professionally trained tax preparer complete your tax return. The biggest fear that most tax payers face each year is the potential of being audited by the I.R.S. It is no secret that the IRS is auditing more returns than ever before and the chance of your return being audited is higher than ever before.
The most important step is to obtain competent tax advice from a tax professional.
Hamati Bookkeeping and Tax Service can help you solve your tax related problems before they fall under the scrutiny of an IRS auditor.
Do you know which red flags can trigger an IRS audit?
To avoid potential ‘red flags’ that could subject your tax return for auditing, consider if any of the following apply to you:
- You made a lot less money last year. Major changes in income, which can signify that a taxpayer is under-reporting his earnings creating red flags.
- Lose or forget to file a form. Employers send copies of all 1099 and W-2 forms to the IRS and, if you lose it or forget to file it with your taxes, your return could be flagged.
- Working for yourself. Being self-employed can raise red flags for the IRS, especially if you claim your home office and other costs as business expenses but don’t earn much income..
- Claiming losses from a hobby. It’s illegal to pretend a hobby is a business and then write off the related expenses.
- Deducting home office (or car) expenses. Many people incorrectly claim home office/car expenses on their taxes.
- Expensive or excessive meals and entertainment costs. The IRS often checks to ensure these types of claims are legitimate business expenses.
- Inflated Charitable Deductions. IRS takes a close look at taxpayers who say they donated $500 or just under.
- Your numbers don’t match. If numbers on various forms don’t match or add up correctly, the IRS is likely to notice and look into any disparities.