Five Tips To Help You Avoid An Audit Letter From The IRS

Corey & Associates   |  


Receiving an audit letter from the Internal Revenue Service (IRS) can be alarming because it may slow down or stop your business activities, and also cost you money. In some cases, even if you do file your taxes by the book and present all the required documentation as proof, you may still receive an audit notice.

In some unfortunate circumstances, IRS audits cannot be avoided, however, if you are careful they can be avoided. By understanding the things that make you a target to the IRS, you can take the right steps to prevent meeting the criteria for an audit.

At Corey & Associates, we have considered the common errors and the IRS review process to protect you from random audits. Based on our findings we have listed the following tips to avoid an audit letter from the IRS.

Tip #1: Submitting half-truths: The IRS uses a complex system to check the accuracy of the information you file. They have three computer systems that rank your returns based on possible errors, unreported incomes, and compare your data to that provided by third parties. If things don’t add up, you could be at risk of receiving an audit letter.

Tip #2: Filing a Schedule C: You are more likely to be audited if you file a Schedule C because the deductions available with a Schedule C are frequently abused. You can consider forming an LLC as they are inspected less frequently, and also come with many deductions which you can benefit from.

Tip #3: Claiming home office deductions: Be sure you can justify this deduction because the IRS pays close attention to it. Maintain appointment records at your office, an office phone, and use your office address, not a PO box. Also, keep your square footage below 20% of your home.

Tip #4: Maintaining inaccurate financial records: To ensure accuracy while filing your taxes and to offer proof to the IRS when requested, it is vital to save receipts and bills. Also, using estimates can attract audits because the IRS computers can detect expenses too high or low for your business.

Tip #5: Not consulting a professional: With the help of a professional you can be sure that your returns are correctly calculated, complete returns are filed, and all your data is legible. They can also help you save money through deductions and refunds based on the current taxation rules.

If you plan to use a tax professional, reach out to Corey & Associates. We are experienced tax accountants in Hialeah, Miami Lakes, FL, and we excel in accounting, tax, and consulting services. We aim to help you by expanding your knowledge of taxes, different accounting practices, and the reasons why the IRS audits businesses and individuals.

Our motto is to build relationships with you through expert services and continuous communication. We are prepared to answer any question you may have to help you make smarter tax-saving decisions. Feel free to get in touch with us by clicking here for a free consult with our tax specialists. To learn more about the services we have to offer, please click here. 

Check out our social media at

Want the latest updates on Accounting? Follow us at