IRS Audits & you.

"Uncle Sam will not audit me, I am a small fish" - We hear it more often than not. Don't be surprised that in the years to come IRS audits might be more common for all irrespective of the income.

The inflation reduction adds 87,000 IRS agents as it pumps $80 billions of increased funding for the IRS we all know that. Therefore, be mindful when filing your taxes, avoid the following: -

• Failing to report income.

• Accelerating many charitable donations or commonly used deductions, make sure they are backed by receipts.

• Reporting too many losses on a Schedule C, year on year.

• Deducting too many business expenses, do not put fake numbers that are not backed up by receipts/bank statements etc.

• Claiming a home office deduction on W2 income

• Using nice, neat, round numbers

• Do not make mathematical errors

Online software's are nice to work with when you file your taxes, reasonably priced & in your control hence the ownership of reporting correctly is always on you. We amend 15% of the tax returns at our office because they were filed incorrectly in the prior year. Please be mindful.

Please reach out to us for help with notices/any other tax issue at contact@2cherrytax.com