Tax Audit Increases on the Way. Tips to Help Save You from the Pain

The time is coming for an overhaul in Internal Revenue Service audits with increased fines, and this time is coming soon. There is way to much increasing national debt to not see the writing on the wall. Now add in a few other items and things will start to clear up.

The Federal deficit is now over $1 trillion and growing rapidly.

The United States Post Office has pension issues now.

Our Social Security system is broke and in a terrible mess.

Fedral Pension plans are underfunded.

Banks are rolling over on a regular basis, and the bailouts are not over.

No end to the needed Tarp funds, now expecting to go into the tens of TRILLIONS of dollars.

You can add a lot more stuff to the above list, and it will just amplify the need for the Internal Revenue Service to take some more serious steps. What better way than to just go straight to the source of these taxes? The general public is way past getting sick and tired of hearing about new taxes, so their approach will be to sneak in the back door. No one will be safe from their watchful eye. Anyone with a taxable income, large or small will be under serious scrutiny.

White collar workers, blue collar workers, soldiers, and politicians.

The entire food service industry, cooks, servers, and suppliers.

Auto workers, landscapers, painters, and welders.

Business owners large and small, loan officers, and bank workers.

Etc, etc, etc, all jobs are at risk.

A very long list of potential donors for dollars to the Internal Revenue Service to squeeze . The bottom line is that every working person in the US just had their odds greatly increased to be audited. You also have to keep in mind that if you are audited and there is a discrepancy found , another door for them is opened. They can and will go through several years of your back returns searching for similar items. This can and will lead to increased fines, with interest added. These people are desperate for cash, and will soon be zeoring in on all this potential cash. So people, do what you have to do, pay real close attention to the filing details, and try your best to get your returns in on time.

Here are a few things you should note to help you stay under the radar:

1) File on time. (very important)

2) Keep proper receipst for all charitable donations, and excessive amounts are a red flag. Be careful of the
deductible amounts you claim for items such as autos, boats, furnure, etc.

3) Avoid foreign bank accounts because they are under huge focus now, and the IRS will figure you are
trying to hide something.

4) Stock sales, keep impeccable records of all dates and buy/sell amounts.

5) Dependants you claim. These rules are tightening, so make sure your qualifications are plain and
verifiable when included in your filing.

6) Self employed: Keep meticulous paper records of all transactions involving expense and
income, and keep a separate bnusiness bank account. Be careful of using non-applicable expenses such
as travel, meals, entertainment, etc. Including personal expenses in your business can cause the IRS to
pick your return apart. Automobile expenses are closely watched also.

7) Include all your bank account interest in your filing, no matter how small.

Just remember that all it takes is one little glitch onyour return to be flagged for review. Once attention has been drawn to your filing they will search for any possible reason to audit.

For more interesting reading on the subject, see this (source) MSNBC article by Paul Sakuma (AP) and this CNN article by Blake Ellis. There are a lot of related facts and figures covered here, and it is worth taking a look.

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