How Can I Minimize My Chances of an Audit?
The IRS audits less than 1% of tax returns, so your chances of having yours further examined are pretty low to begin with. But if you want to further minimize your chances of getting audited, here are a few essential moves to make.
The IRS is entitled to a share of all of your income (though there are a few exceptions, like municipal bond interest or Roth retirement plan withdrawals). But if you fail to report income, it could lead the agency to dig deeply into your return. In addition to your W-2, be prepared to provide details on all other income you earned during the year. This includes:
Specifically, pay attention to the 1099 forms you receive documenting income outside of your main paycheck. For each copy you get, the IRS receives one as well, and if your records don't match, you're more likely to get audited.
Source Fool.com
