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5 Ways to Avoid an IRS Audit

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

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What is IRS Form 8824: Like-Kind Exchange

Ordinarily, when you sell something for more than what you paid to get it, you have a capital gain; when you sell it for less than what you paid, you have a capital loss. Both can affect your taxes. But if you immediately buy a similar property to replace the one you sold, the tax code calls that a "like-kind exchange," and it lets you delay some or all of the tax effects. The Internal Revenue Service (IRS) uses Form 8824 for like-kind exchanges.

What are ABLE Accounts? Tax Benefits Explained

Achieving a Better Life Experience (ABLE) accounts allow the families of disabled young people to set aside money for their care in a way that earns special tax benefits. ABLE accounts work much like the so-called 529 accounts that families can use to save money for education; in fact, an ABLE account is really a special kind of 529.

What is IRS Form 8829: Expenses for Business Use of Your Home

One of the many benefits of working at home is that you can deduct legitimate expenses from your taxes. The downside is that since home office tax deductions are so easily abused, the Internal Revenue Service (IRS) tends to scrutinize them more closely than other parts of your tax return. However, if you are able to substantiate your home office deductions, you shouldn't be afraid to claim them. IRS Form 8829 helps you determine what you can and cannot claim.

What is IRS Form 8859: Carryforward of D.C. First-Time Homebuyer Credit

Form 8859 is a tax form that will never be used by the majority of taxpayers. However, if you live in the District of Columbia (D.C.), it could be the key to saving thousands of dollars on your taxes. While many first-time home purchasers in D.C. are entitled to a federal tax credit, Form 8859 calculates the amount of carry-forward credit you can use in future years, not the amount of your initial tax credit.

What is IRS Form 8379: Injured Spouse Allocation

The Internal Revenue Service (IRS) has the power to seize income tax refunds when a taxpayer owes certain debts, such as unpaid taxes or overdue child support. Sometimes, a married couple's joint tax refund will be seized because of a debt for which only one spouse is responsible. When that happens, the other spouse is said to be "injured" and can file Form 8379 to get at least some of the refund.

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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