Evade an Audit by Avoiding Mistakes

Physician's Money Digest, November 2005, Volume 12, Issue 15

Investor's Business Daily

Investor's Business Daily

Audits are on the rise, according to anarticle in , and thegroup being hit the hardest are taxpayersmaking $100,000 or more per year,which includes most physicians. In2004, 19% more taxpayers faced anaudit, with a whopping 43% more taxpayersearning $100,000 and aboveincluded in that group. If you're concernedthat you may be the next to fallunder the scrutinizing gaze of the IRS,don't worry. There are several steps youcan take to prevent becoming a target.The most important may be avoidingcommon mistakes and not repeatingmistakes you may have made in thepast, especially if you were audited previously.One common mistake, according to, is not informingthe IRS if your spouse has a name change.Also, watch your calculations. If there issomething peculiar-looking on your return,you should attach a note explaining it; otherwise,something questionable, no matterhow legitimate, may lead to an audit.Simple math errors may also set off auditalarms, so make sure you double-check.