You’re being a responsible human and checking the mail.But then.
It’s the dreaded letter from the IRS.
There’s a little pause before you open the envelope.
Your stomach clenches. You pray you haven’t been selected for an audit.
You can take back some of that power. That feeling of helplessness, of fear — being proactive with your tax planner will help dissolve those paralyzing emotions.
These numbers will help you feel better about your audit risk
Part of the dread over IRS audits is the fear of the unknown. But how often does an audit actually happen?
40 years ago, 1 in 44 tax returns were audited.
Today, the numbers are roughly 1 in 100.
Published audit data (thanks IRS!) tells us that small businesses, especially sole proprietorships are a focus area. The IRS typically finds that this sector has the most underreported income and misappropriated cash receipts.
#1: Tell yourself this when you submit your tax returns
When you send in your return or submit it online, you should always hold the belief that you will be audited.
Tell yourself, “I will be audited.”
Do it now.
Maybe you should write it on a big sticky note and put it near your computer.
By keeping this statement in the front of your mind all year, you’ll subconsciously be more diligent with paperwork and tracking your credits and deductions.
#2: Using this will help you all year long
A tax strategy is not a flag to the IRS to audit your return.
If you use a year-round tax plan, you’ll be consistently reviewing your record keeping and transactions.
That should easily translate into more deliberate and accurate documentation.
You’ll also have heavy support for your deductions and credits. This is where you can erase that fear — knowing it’s all backed up by sound data.
#3: Take action today to lower your audit risk
The tax code is always changing. What worked last year might not be the best fit for your business in 2019 or 2020.
A proactive and strategic approach can help navigate today’s changing tax landscape and help you keep more of what you’ve earned.
You don’t have to feel powerless.
Be proactive. Set up an appointment with your CPA today to map out a tax strategy that fits your business.
You save money whenever we find another way to maximize your tax return options.
Securely submit your tax return to Morgan & Associates CPAs so we can analyze your tax returns for missed opportunities.
We’ll review it and get back to you quickly!