Advice for Nevada residents trying to avoid IRS visit
Keeping track of income tax is a year-round responsibility for every American, not just during tax time. Nevada residents hoping to avoid an unpleasant run-in with the IRS need to ensure they are up-to-date on what is required of them as taxpayers when the annual review comes around. In order to avoid an audit, or to walk away from one unscathed, there are a variety of important points to remember.
Functionally speaking, everything is income — that is to say, every time an individual earns money, wins money, or even finds money, the IRS is entitled to tax it as income. Keeping records of these amounts can be helpful when it comes time to report them, or when the IRS has questions about a given amount. It is important to remember that every American retains the right not to speak to an IRS agent if they appear at a private residence or business. It is a smarter move to defer the engagement to educated representation.
While the IRS urges individuals to amend their tax returns if an error is encountered after filing, this is a sure-fire way to increase the potential for an audit, particularly if the amended return requests a refund. Filing on time, even if the amount owed cannot be paid immediately, can sometimes decrease penalties. Above all, avoid waiting until the last minute to seek support in filing taxes — this will save not only stress, but a potential visit from the tax man.
Tax time is stressful for everyone, as Nevada residents are keenly aware. Knowing one’s responsibilities to the IRS can go a long way toward lessening that stress. Filing accurately and on time is still the best way to avoid an audit and keep a clear tax record.
Source: Forbes, 10 Tax Commandments….To Keep IRS Away, Robert W. Wood, Sept. 26, 2013