Phil's Personal Finance Tip of the Day:
6 ways to avoid an audit
Minimize your chances of a follow-up from the IRS
From MarketWatch
While the government has cracked down in recent years on wealthy Americans stashing millions in offshore accounts, tax pros say it isn’t just the high rollers who might merit a double take from the IRS.
The total number of audits conducted over the mail for people earning more than $200,000 increased by 13% in 2012 from the year before, to 109,318, according to the IRS. Some taxpayers can get flagged for an audit if they make mistakes that cause the agency to question whether they’re reporting all of their income — from forgetting to report even small amounts of income to paying taxes for your babysitter.
To be sure, you can typically stay in the clear if you report your income honestly and maintain proper documentation, tax pros say. And overall, the probability of being audited is still low — the IRS audited less than 1% of taxpayers last year. Still, there are a few steps taxpayers can take to help keep their chances to a bare minimum. — By Jonnelle Marte
To read the entire article from MarketWatch:
http://www.marketwatch.com/story/5-ways-to-avoid-an-audit-2013-02-25
Inspirational Quotes@Inspire_Us from Twitter:
Decide that you want it more than you are afraid of it. -Bill Cosby
Hi my name is Philip J. Miano and I am the founder of PJM Personal Finance and Productivity Coaching specializing in Budgeting, Debt Reduction, Bank Reconciliations, Goal Setting, Time Management, and Organizational skills. Please visit my website: http://pjmcoaching.com
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