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🎯How to prepare for a tax audit



A tax audit can be a stressful and daunting experience, but with the right preparation, you can minimize your chances of an audit and be ready in case one does occur. Here are a few things you can do to prepare for a tax audit:

1. Keep accurate records: The most important thing you can do to prepare for a tax audit is to keep accurate records. This includes keeping receipts, invoices, bank statements, and any other documentation related to your income and expenses.

2. File your taxes on time: Filing your taxes on time can reduce your chances of an audit. The IRS has a three-year statute of limitations on audits, so if you file your taxes on time, the IRS may not have the opportunity to audit your return.

3. Be honest: Be honest and accurate when filling out your tax return. If you're not sure about something, ask a tax professional for help.

4. Understand your deductions: Make sure you understand the deductions and credits you're claiming, and that you're eligible for them. If you're unsure, consult a tax professional.

5. Don't claim round numbers: The IRS uses computer programs to detect patterns in returns, and round numbers can be a red flag. Make sure your deductions, credits, and income figures are accurate and not rounded.

6. Organize your records: Keep your records organized and easy to access. The IRS will ask for specific documents, and it's much easier to provide them if you know where they are.

7. Be prepared to defend your deductions: Be prepared to defend your deductions and credits if you're audited. If you're not sure about something, consult a tax professional.

8. Hire a tax professional: If you're audited, consider hiring a tax professional. They can represent you in front of the IRS and ensure that your rights are protected.

A tax audit can be a stressful and daunting experience, but with the right preparation, you can minimize your chances of an audit and be ready in case one does occur. Keep accurate records, file your taxes on time, be honest, understand your deductions, don't claim round numbers, organize your records, be prepared to defend your deductions and hire a tax professional if you are audited. Remember that being prepared and organized can make the process less stressful.

➡️ Questions about your taxes and need to speak to a licensed professional? 

Book a consultation HERE.

Lloydetta Bryant, EA, MBA is your Tax Expert who will work diligently to find the right solution for your specific tax situation. As an Enrolled Agent licensed through the IRS, Lloydetta can step in on your behalf to advocate for you. As a content creator on YouTube, you’ll find that focus on helping black women-led businesses with Solutions Beyond Taxes. Although we are a virtual firm,  Ethical Tax and Business Services is located in the Savannah/Richmond Hill, GA areas, and can serve taxpayers in all 50 states by providing tax services from compliance to representation and the expertise needed to get the job done.

Find out more about us: Click to Learn More

#TaxHelp #IRSRepresentation #BackTaxes #BlackWomenInBusiness #EnrolledAgent #TaxRelief #IRSpenalties #WellnessEntrepreneur #EthicalTax #TaxDebtHelp #LicensedTaxPro

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