- Days left

5 Ways to Avoid an IRS Audit

×



To Learn More

Get more tips on your rights as a taxpayer as well as information on the audit process from IRS Publication 556. Good luck!

You can follow Motley Fool contributor Dan Caplinger on Twitter @DanCaplinger.

Increase your money and finance knowledge from home

How much house can I afford

Home buying 101, evaluating one of your most important financial decisions.

View Course »

How to Buy a Car

How to get the best deal and buy a car with confidence.

View Course »

TurboTax Articles

Will Medicare/Medicaid be Impacted by ACA?

The Affordable Care Act put in place significant tax-related programs that impact Medicare and Medicaid, such as increased Medicare taxes on earned and unearned income for high-wage earners, and Medicaid changes that increase the number of insured individuals. Establishing whether you are affected by the ACA-imposed taxes, or are eligible for certain health programs that fall under the Centers for Medicare and Medicaid Services, is determined by filing your income tax.

8 Things You Think Are Tax Deductible That Aren't

There?s a fine line between looking to save money on your taxes and taking deductions that will raise eyebrows at the Internal Revenue Service. Some taxpayers are tripped up by expenses that they assume are tax deductions, but don?t qualify under IRS guidelines. Here are a dozen items that can lead to unpleasant surprises in case of an audit.

Essential Tax Forms for the Affordable Care Act

The Affordable Care Act (ACA), also referred to as Obamacare, affects how millions of Americans will prepare their taxes in the new year. The law now includes penalties for all who haven?t obtained health insurance -- and those penalties are expected to be paid at tax time. The ACA also provides tax credits to help people pay for insurance, and you can claim those credits when you file your taxes. The Internal Revenue Service (IRS) has introduced a number of tax forms to accommodate the ACA.

How to Determine if You Have Minimum Essential Coverage (MEC)

The Affordable Care Act, also known as Obamacare, requires most Americans to have health insurance that meets a government standard known as "minimum essential coverage," or MEC. Whether your insurance qualifies as MEC depends not on the plan itself, but on how you obtained your coverage.

What are 1095 Tax Forms for Health Care?

In 2014 the Affordable Health Care Act, also known as Obamacare, introduced three new tax forms relevant to individuals, employers and health insurance providers. They are forms 1095-A, 1095-B and 1095-C. These forms help determine if you need to comply with the new shared responsibility payment, the fee you might have to pay if you don't have health insurance. For individuals who bought insurance through the health care marketplace, this information will help to determine whether you are able to receive an additional premium tax credit or have to pay some back.

Add a Comment

*0 / 3000 Character Maximum

10 Comments

Filter by:
SteveScottW1218

http://p3greenbykoolmo.webs.com/

January 30 2013 at 10:00 PM Report abuse rate up rate down Reply
TB

In October, we received an invoice from the IRS in the mail.....it was unfathomable, and since wifey had just had surgery that morning, we said "Phock it" and sent 'em their 1400 bucks.........a week later we dug into it, wrote them the clarifying explanation, and last week got a check back with a tidbit of interest.

What I'm trying to say is, if you can afford it, whip the check out immediately and fight it out later - those interest/penalty fees shoved by the IRS would make the Mafia blush.

January 27 2013 at 6:24 PM Report abuse rate up rate down Reply
ae12wrangell

Heres how to avoid an audit;
1) Don't file taxes
2) Move to Switzerland where US Government can't get a hold of you

January 27 2013 at 3:53 PM Report abuse +1 rate up rate down Reply
investrman

YOU cannot !

If you are a US small business you will be audited as IRS made changes they do not inform public about and this President is at war with all small business thinking we are hiding monies and they are taxing us into higher categories now.

iI you get a divorce or have ANY sudden change in your income, YOU will be audited too.

January 27 2013 at 10:41 AM Report abuse +2 rate up rate down Reply
Nekima

Barter, cash, and off shore accounts. Its the new way of the "great american life"

January 21 2013 at 7:47 PM Report abuse rate up rate down Reply
jekap55

Don't work. No income, no taxes, no audit.

January 20 2013 at 10:23 PM Report abuse +4 rate up rate down Reply
Mark

Set aside the money, then just lie your butt off, You might get away with it. If not just pay them. It's a stupid system. Only people in cartoons should be using this disfunctional tax system. We all deserve better than this.

January 20 2013 at 2:19 PM Report abuse +4 rate up rate down Reply
1 reply to Mark's comment
jlrander

They will search until they find something to disallow. Quick write a check. They have to justify the time they spent burrowing into your records.

January 21 2013 at 7:28 AM Report abuse +2 rate up rate down Reply
Rhianon

Keeps receipts especially if you itemize.

January 20 2013 at 12:41 PM Report abuse +4 rate up rate down Reply
Smitty

Never file taxes, then there's nothing to audit!

January 20 2013 at 12:12 PM Report abuse -4 rate up rate down Reply