With tax season in full swing, a concern on many taxpayers’ minds is avoiding an IRS audit. Carol-Jean Higgins, director of tax management services at Summit Financial, weighed in on the importance of including all reported information on your returns for U.S. News & World Report: How to Avoid an IRS Audit
Dumb mistakes. Be sure your Social Security number is correct, and that the numbers you put in the return match what the IRS will see on forms submitted by others, such as financial services firms you do business with. That includes profits and loses on investments you sold and so forth.
And be sure to double-check your arithmetic, says Carol-Jean Higgins, director of tax management services at Summit Financial Corp. in Burlington, Massachusetts.
“Failure to include information on your return which has been reported by others is a problem, but does not necessarily mean there will be an audit,” she said. “W-2s and 1099s will be compared to the returns and, if there is a discrepancy, they will likely point it out and suggest that you change your figures or provide an explanation.”