Ways to reduce the chances of IRS audits
File late tax return
Filing late tax return with an extension is believed to
reduce IRS audit chances because there is a limited number of
tax returns the IRS can audit. Many of these tax returns
will already have been selected before a late tax return is
actually filed. If a tax payer gets a tax
filing extension, it is only an extension of the time
a tax payer has to file the tax returns not the
time tax payer has to pay taxes owed to the IRS.
The tax payer must pay at least 90% of the taxes due by
April 15 to avoid tax penalties of late tax return.
File legible tax returns that are neat and organized
Nowadays there are many cheap tax filing software such as
Turbo tax and Tax Cut and many software online. Don't file a
tax return that the IRS has trouble reading or understanding.
If the IRS is forced to examine a tax return more closely
because it cannot read some of the information on the tax
return, the chances of an IRS audit increase tremendously.
This is unnecessary risk of an IRS audit.