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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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Cities with the Lowest Tax Rates

The total amount of tax you pay reaches far beyond what you owe the federal government. Depending on where you live, most likely you're required to pay additional taxes, including property and sales tax. The disparity between the amount of tax you pay in a low-tax city and that in a high-tax city can be dramatic. Living in any of these 10 cities could save you a bundle, although the exact amount may fluctuate based on your income and lifestyle choices.

Cities with the Highest Tax Rates

Much ado is made in the press about federal tax brackets, but cities can carry a tax bite of their own. Even if you live in a state that has no income tax, your city may levy a variety of taxes that could eat away the entire benefit of living in an income tax-free state, including property taxes, sales taxes and auto taxes. Consider all the costs before you move to one of these cities, and understand that rates may change based on your family's income level.

Great Ways to Get Charitable Tax Deductions

Generally, when you give money to a charity, you can use the amount of that donation as a deduction on your tax return. However, not all charities qualify as tax-deductible organizations. While there are many types of charities, they must all meet certain criteria to be classified by the IRS as tax-deductible organizations. There are legitimate tax-deductible organizations in many popular categories, such as those listed below.

A Freelancer's Guide to Taxes

Freelancing certainly has its benefits, but it can result in a few complications come tax time. The Internal Revenue Service considers freelancers to be self-employed, so if you earn income as a freelancer you must file your taxes as a business owner. While you can take additional deductions if you are self-employed, you'll also face additional taxes in the form of the self-employment tax. Here are things to consider as a freelancer when filing your taxes.

Tax Deductions for Voluntary Interest Payments on Student Loans

Most taxpayers who pay interest on student loans can take a tax deduction for the expense ? and you can do this regardless of whether you itemize tax deductions on your return. The rules for claiming the deduction are the same whether the interest payments were required or voluntary.

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

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

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

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

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

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

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

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

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

Keeps receipts especially if you itemize.

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

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

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