Certain moves might subject your tax return to further scrutiny. Here are some critical mistakes to avoid.
As if filing taxes weren’t stressful enough, if there’s one aspect of the process that really shakes workers to their core, it’s the prospect of getting audited. Now before we go on, let’s get the following out of the way: Statistically speaking, your chances of getting audited are pretty low, as less than 1% of all returns land on the IRS’s list each year. That said, in preparing your tax return, you could end up making certain moves that increase your audit risk without you being any the wiser. Here are a few that could subject you to further IRS scrutiny.
1. Rushing through your taxes
Some people wind up filing their taxes at the very last minute because they’re forced to wait on key information or are at the mercy of their CPA friend who’s supposed to be helping out. But in many cases, folks who end up sweating it out right around the deadline are those who simply procrastinate. Either way, you should know that rushing through the process is a good way to inadvertently increase your audit risk, since, in doing so, you’re more likely to omit key information or enter the wrong data.
A better bet? Pledge to start tackling your tax return a minimum of one month prior to the deadline, which falls out on April 17 this year. That’s right — you get a couple of extra days, which means you have even less of an excuse to run out of time.
2. Filing on paper
If you’re the old school type, you may decide to file your taxes on paper this year rather than do so electronically. Bad move, my friend. Filing on paper means you’re far more likely to make a mistake, and if that happens, your return could land on that audit list faster than you can say “whoops.”
Consider this: The IRS reports that the error rate for paper returns is 21%, which means that one in five tax filers who go this route manages to muck something up. The error rate for electronic returns, on the other hand, is less than 1%. Remember, we’re all human, and therefore subject to the occasional blunder. But if that slip-up results in an IRS audit, you’ll be kicking yourself for not doing everything possible to lower your risk.
