What is your strategy for avoiding an IRS tax audit? (along w/ telling truth)

[Swing low, sweet chariot. Comin' for to carry me home.]

My main strategy is to include supporting documentation WITH my tax return, and not wait for an IRS audit to show proof.  Example: if I have a line item that I know is out of the ordinary, I include an attachment explaining/proving that it's legit.  That lets the IRS know right up front that an audit is a waste of time.  

It's something my CPA has always recommended to me.  And I have yet to be audited.

[Politico]

Just tell the truth, pay what you owe, and always have as much supporting documentation as possible in case an audit happens. Probably does not hurt to include more documentation than you need to, but doing so might raise flags.

Help elect public officials who support tax cuts if you disagree with the amount you are taxed, and/or how your taxes are spent.

[opebo]

Audits are very rare, no?

[CLARENCE 2015!]

When I owned my business I was audited nearly every other year... best way is to be honest. I have friends who bent the rules for $50 and ended up  paying much more then that in penalties

[Swing low, sweet chariot. Comin' for to carry me home.]

When I owned my business I was audited nearly every other year... best way is to be honest. I have friends who bent the rules for $50 and ended up  paying much more then that in penalties

I always pay more than what was owed, then roll my refund into the following year (usually I try to make sure my refund is no less than 50% of my Q1 estimated taxes)...that way, I will never owe penalties if I make a mistake.

[TeePee4Prez]

I agree with jmf.  If it's 3rd party verified, such as a W-2, 1098, or 1099, be honest, it's in the system.  No fooling around here.  If it's out of the ordinary such as

- Charitable contribution > 25% of AGI
- Travel, meals, entertainment > 30% of gross receipts
(figures generally speaking.  Don't quote me on this)

... or anything excessive for your type of business, then provide receipts!  Audits are higher for higher income taxpayers, but every bracket has been audited by either a Revenue Agent or an "office audit."  The IRS has a system that checks for unusual items and pulls cases for agents/office auditors based on certain criteria.  It changes frequently.

Also, if you get audited.  Don't be stupid and volunteer unnecessary information.  You could be in more hot water than you could be.

[memphis]

My income isn't high enough for the IRS to bother me.

[Teddy (IDS Legislator)]

The government always finds money for me, so I'd use whatever strategy would get me audited.

[○∙◄☻¥tπ[╪AV┼cVê└]

My income isn't high enough for the IRS to bother me.

30% of those audited earned little enough to claim the earned income credit.

[bullmoose88]

I agree with jmf.  If it's 3rd party verified, such as a W-2, 1098, or 1099, be honest, it's in the system.  No fooling around here.  If it's out of the ordinary such as

- Charitable contribution > 25% of AGI
- Travel, meals, entertainment > 30% of gross receipts
(figures generally speaking.  Don't quote me on this)

... or anything excessive for your type of business, then provide receipts!  Audits are higher for higher income taxpayers, but every bracket has been audited by either a Revenue Agent or an "office audit."  The IRS has a system that checks for unusual items and pulls cases for agents/office auditors based on certain criteria.  It changes frequently.

Also, if you get audited.  Don't be stupid and volunteer unnecessary information.  You could be in more hot water than you could be.

The home office, IIRC, is another one a lot of taxpayers get slammed on too. 

[memphis]

My income isn't high enough for the IRS to bother me.

30% of those audited earned little enough to claim the earned income credit.

o
Odds are super low. So not worried about it.

[CLARENCE 2015!]

I agree with jmf.  If it's 3rd party verified, such as a W-2, 1098, or 1099, be honest, it's in the system.  No fooling around here.  If it's out of the ordinary such as

- Charitable contribution > 25% of AGI
- Travel, meals, entertainment > 30% of gross receipts
(figures generally speaking.  Don't quote me on this)

... or anything excessive for your type of business, then provide receipts!  Audits are higher for higher income taxpayers, but every bracket has been audited by either a Revenue Agent or an "office audit."  The IRS has a system that checks for unusual items and pulls cases for agents/office auditors based on certain criteria.  It changes frequently.

Also, if you get audited.  Don't be stupid and volunteer unnecessary information.  You could be in more hot water than you could be.

The home office, IIRC, is another one a lot of taxpayers get slammed on too. 

And employing family members...my wife was my office manager

[SUSAN CRUSHBONE]

Just tell the truth, pay what you owe, and always have as much supporting documentation as possible in case an audit happens. Probably does not hurt to include more documentation than you need to, but doing so might raise flags.

Help elect public officials who support tax cuts if you disagree with the amount you are taxed, and/or how your taxes are spent.

I think taxes should be higher => I should vote for people supporting tax cuts.

Thank you for clearing that up.