Top Reasons Why the IRS Will Audit You
- October 29, 2019
- Posted by: asal
- Category: Tax Relief
Paying taxes is essential for every individual. If you do not pay your taxes properly and timely, sooner or later, you will find the IRS coming after you. Clearing off the back taxes as well as all the other essential tax-related issues is essential. In case the IRS finds something wrong with the tax dues that you have cleared off, it is going to send you a formal notice for conducting a state tax audit.
This notice is a clear sign of worry. However, you can hire one of the reliable tax resolution services to help you out with the situation. The tax resolution experts will understand your situation correctly and come up with the best fit solution for you. Keep reading to find out about the top reasons as to why the IRS will plan for a state tax audit for you.
The reasons why the IRS will audit you
There are multiple reasons why the IRS will conduct a state tax audit on you.
The top in the list is given below:
#1 Data entry errors
One of the most popular reasons for a state tax audit is the error in the data entry. For that matter, this data could be complex relating to your savings and expenditures. Or, it could be something as simple as entering the social security number.
To avoid these kinds of errors, it is better to opt for electronic filing of data. Also, using electronic calculators can reduce or eliminate the errors that might arise otherwise.
#2 Unreported income
It might sound very tempting to miss out on a few income details and records to save yourself from paying a certain tax amount. However, it is certainly not the ideal choice. If it comes in the eyes of the IRS, they will conduct a state tax audit on you to look into the matter. And, there are severe repercussions associated with it.
In case you do land up in a situation like this, hiring one of the tax resolution services is the best way to make your way out it properly.
#3 Overstating the deductions
You could land in huge trouble if you try to overstate your deductions to save on taxes. The entries that you make for charitable deductions or any kind of business expenses, the IRS takes special care to look into them.
Overstating these charities or other expenses can land you into a situation where the IRS issues a state tax audit against you. Therefore, seek help from the right tax resolution services.
#4 Errors in the filing status
Filing the taxes is very important. Making errors while filing all the expenses can result in a state tax audit too. There could be a number of reasons as to why you were unable to file your taxes properly. However, none of these reasons is good enough when it comes to dealing with the IRS.
It is the duty of the IRS to keep a check on your taxes. Anything suspicious will definitely lead to some kind of trouble.
#5 Claim of dependents that don’t exist
This might be a genuine mistake too. However, it can certainly land you in trouble if the IRS finds it out. There are different factors that can lead to confusions in this matter. For instance, child custody is one of the aspects that can cause confusion. Thus, follow the guidelines properly to avoid a state tax audit from the IRS.
#6 Claiming the Earned Income Credit
The Earned Income Tax Credit or the EITC is meant for those individuals who have very low incomes. There are a number of rules to obtain this EITC. And, the IRS looks closely into the matter. Therefore, in case you have claimed for the EITC that you are not eligible for, it could lead to a state tax audit.
Your self-employment can call for a state tax audit too.
The individuals who are self-employed gather more attention from the IRS. This is especially in case you fail to submit your report of profits or losses for a minimum of three years out of five years.
The IRS can look into the matter very seriously and call for a state tax audit to clarify its doubts.
Hiring the right firm to help you out
It is very important to hire the right tax resolution services to help you out with anything that has something to do with the IRS. Getting into an issue with the IRS is a very serious matter. Therefore, it is important that you seek guidance from the right tax resolution experts who have experience in the field. They should also be well-qualified so that they are thorough with the different state tax laws and clauses that exist. The right professionals can save you from a lot of hassles.
Choose Platinum Tax Defenders for your needs.
Platinum Tax Defenders is one of the best tax resolution services to hire for all your tax-related issues. The tax resolution experts at Platinum Tax Defenders are well-trained, and thus, they know how to handle the state tax audit with expertise.
Make the right choice and hire them for your tax issues. Their past record clearly shows how good and efficient they are with their services. They will take care of all the matters and minimize the damages or losses for you.
About Platinum Tax Defenders
Platinum Tax Defenders is one the leading tax resolution services operating in Los Angeles. Since its establishment, the firm has been helping a multitude of taxpayers by resolving their issues with the IRS as well as the state tax issues. The team of professionals or tax resolution experts working Platinum Tax Defenders has nearly 90 years of experience when combined together. The professionals have served clients having varied issues related to a state tax audit, bank levies, liens as well as wage garnishments.
The firm has experienced IRS enrolled agents, tax attorneys, tax resolution experts as well as certified public accountants who can provide expertise in various tax associated issues. The team will come up with a solution for you that is quick and efficient. Therefore, choosing them would be the optimum choice.