Few people enjoy filing their taxes. Even fewer look forward to the possibility of an audit. But unfortunately, anyone can find themselves randomly chosen to have their financial records pored over by the IRS or the Georgia Department of Revenue.
The conventional guidance on income tax returns is to file every year, and hold onto your tax records for at least three years after you file. However, there are certain situations under which those guidelines change—and additional factors that redefine those guidelines altogether.
The federal government permits a wide range of deductions and tax credits to lessen your income tax burden each year. However, the IRS also has a good idea--based on your income and other factors--which tax breaks you'll likely qualify for. Therefore, it's important to be certain of your eligibility for any credits and deductions you claim, because a false claim could raise a red flag for an audit.
Almost everyone in Georgia has an obligation to file tax returns. Unfortunately, organizing the paperwork involved is almost as unpleasant as paying. Despite the challenges of preparing tax returns, people need to be thorough and have documentation to support their income and deductions. A variety of mistakes, such as rushing or approximating figures, could raise red flags that trigger an audit by the Internal Revenue Service.
Georgia taxpayers may be under the impression that the Internal Revenue Service conducts audits on only a tiny number of tax returns each year. However, according to H&R Block, the number may be significantly higher than commonly reported statistics indicate.