An IRS audit can be a nightmare.  Depending on how it pans out, it may leave you broke.  Furthermore, the tax code changes quite frequently over the years, so it can be difficult staying on top of things and avoiding the mistakes that can make your case auditable when making your tax returns.  So if you want to stop an IRS audit, here are some ways to do so.

My first tip is to get professional help in preparing your taxes, such as from an accountant.  As I said, the rules in the tax code changes ever so frequently.  It takes a true professional to understand where you can get away with exaggerating and where you need to play by the rules.  Of course you can prepare and file your own returns. But if you don't want to be audited, get some professional assistance. It would probably only cost you some $40 or so.

The second tip is to use fibs sparingly and wisely.  Admittedly, most people stretch the truth somewhat when filing their tax returns.  But if you make some unbelievable claims, that would only serve to bring you into the radar screen of the IRS.  The more you exaggerate the truth, the better the chances that you will get a call from the IRS.

Did you know that if you are married and you make a separate filing from your spouse, it would raise suspicions from the IRS?  Although it is not illegal for a married taxpayer to make separate returns it will raise a red flag.  If you combine this red flag with other common red flags, the possibility of being audited gets higher.  The main reason why a married person would file separately is to hide income or other assets from the IRS, although there are also many reasonable and logical reasons why this would be done as well.  So you can technically file separate returns from that of your spouse but make sure it is for legitimate reasons that you can back up.

You will almost certainly be the focus of IRS attention when you declare a charitable donation that is not in proportion to your income.  We all know that charitable donations are an excellent tax write-off, but if you are donating thousands of dollars, while only bringing home a few thousand dollars yourself, you will almost certainly get audited.

While this list is far from being all-inclusive, if you steer clear of these normal traps, you can stop IRS audit before it has a chance to ruin your life.

Darrin T. Mish is a veteran, nationally recognized tax attorney who has focused on providing IRS help to taxpayers for over a decade. He regularly travels the country training other attorneys, CPAs and enrolled agents on how to handle their toughest cases with the IRS. He is highly ranked among the top attorneys in the country, with an AV rating from Martindale-Hubbell and a perfect 10 on Avvo.com. Martindale-Hubbell has also honored him with a listing in their Bar Register of Preeminent Lawyers. He is a member of the American Society of IRS Problem Solvers and the Tax Freedom Institute. With clients on every continent but Antarctica, he has what it takes to solve your IRS problems no matter where you live in the world. If you would like more information about his practice and how he can help you, please call his office at (813) 229-7100 or toll free at 1-888-GET-MISH.

Did you know there is a provision in tax law that protects you if you are divorced and your ex-spouse has cheated on your joint taxes?  It is called the Innocent Spouse Tax Relief.  So if you have been jeopardized by your ex-spouse's financial dishonesty or even indiscretion, listen up for this applies to you.

The Innocent Spouse Tax Relief is aimed at restoring to you whatever you may have lost in terms of tax refunds and protecting you against tax penalties because of your errant ex-spouse.  According to the IRS website, if you filed a joint tax return and if the IRS took what was going to be your refund to help pay for debt your spouse owed due to unpaid taxes, child support payments or because of other debt such as a student loan, you are entitled to your money back.  In this way, you can regain what is rightfully yours.

Obviously, this rule is gender-neutral in that it applies equally to both men and women who are recently divorced; yet it is doubtless that it would apply more to women than men.  For once the IRS has done a wonderful job of publicizing this new rule unlike other rules enacted in the past where the IRS would change major rules and not really tell anyone, but then audit you when you didn't abide by the new rule.

It is highly likely that the Innocent Spouse Tax Relief provision would be continued this year, by the looks of how popular it is.  The IRS understands that many people choose to file jointly because of the tax benefits and they also understand that not everyone should be penalized for such things.  Thus taxpayers in such situations do not have to feel tied down to their spouses' bad tax standing.

To qualify for the Innocent Spouse Tax Relief, you will have to answer a series of questions found on the IRS website.  Don't be put off by this process because it isn't too difficult to understand, and the tax break can make a huge difference to you if you qualify.  In cases of doubt, simply contact a lawyer, accountant or the IRS itself.

Darrin T. Mish is a veteran, nationally recognized tax attorney who has focused on providing IRS help to taxpayers for over a decade. He regularly travels the country training other attorneys, CPAs and enrolled agents on how to handle their toughest cases with the IRS. He is highly ranked  among the top attorneys in the country, with an AV rating from Martindale-Hubbell and a perfect 10 on Avvo.com. Martindale-Hubbell has also honored him with a listing in their Bar Register of  Preeminent Lawyers. He is a member of the American Society of IRS Problem Solvers and the Tax Freedom Institute. With clients on every continent but Antarctica, he has what it takes to solve  your IRS problems no matter where you live in the world. If you would like  more information about his practice and how he can help you, please call his office at (813) 229-7100 or toll free at 1-888-GET-MISH.

From time to time, there are changes made by the authorities to the tax code.  These changes may be minor or major.  Both kinds of changes will inevitably affect taxpayers in some way or other.  One of the recent major changes in tax law is the introduction of the American Recovery and Reinvestment Act 2009 (ARRA) that has radically changed the way of calculating your total withholding allowances.  This article will give information on the major changes arising out of the ARRA this year.

Under the ARRA, a new provision has been introduced called 'Making Work Pay' tax credit which came into effect on April 1.  Your employer should automatically be taking this new credit into account when they deduct the total amount of tax from your pay check. If this is not done, you will not have enough money taken out during the year for your taxes.  And this in turn would result in you having to pay more when you file your tax returns next year.  The calculator that is on the IRS website has been configured to reflect these new numbers, so if you want to know how this new rule affects you personally, the website is where to go.

The 'Making Work Pay' tax credit only applies to earned income, not pension income.  This exemption is taken into account when you use the IRS website's online calculator to compute your withholding allowances.  Another notable change from last year to this year is the effect tax has on unemployment compensation.  Under the ARRA, the first $2,400 you are given through unemployment is now not taxable.  This will benefit those who are unemployed because it will exempt them from unnecessary taxes.

When you use the IRS' online calculator, any information you input into it is completely private and will not be shared with anybody, nor will it be saved. This is to safeguard the confidentiality of every taxpayer's personal tax figures.

The IRS' online calculator can be found at its website www.Irs.gov and can really help in figuring out how much tax should be withheld from your paycheck each and every pay period.  Knowing this information will help you plan your personal budget for the year.  It can also give you an idea if you will owe money at the end of the year or if you will get a refund.  Other factors also need to be put in place, but knowing how much withholding allowances you have is a big part of planning your financial future.

Darrin T. Mish is a veteran, nationally recognized tax attorney who has focused on providing IRS help to taxpayers for over a decade. He regularly travels the country training other attorneys, CPAs and enrolled agents on how to handle their toughest cases with the IRS. He is highly ranked among the top attorneys in the country, with an AV rating from Martindale-Hubbell and a perfect 10 on Avvo.com. Martindale-Hubbell has also honored him with a listing in their Bar Register of Preeminent Lawyers. He is a member of the American Society of IRS Problem Solvers and the Tax Freedom Institute. With clients on every continent but Antarctica, he has what it takes to solve your IRS problems no matter where you live in the world.
If you would like more information about his practice and how he can help you, please call his office at (813) 229-7100 or toll free at 1-888-GET-MISH.

Does everybody need to file income tax returns every year?  Not necessarily.  The fact is, there are lots of different individuals who do not need to file a return. So who are those who need to file and who are exempted?  Read on to find out.

The lowest limit is $3,000, meaning if you earn less than $3,000 per year, you are not required to file any return.  In most cases, if you make below $15,000 per year, you quite certain to get a refund of all your taxes.  There are many other exceptions that change each year depending on how the tax code changes.  You should consult a tax professional like a tax attorney or check with the IRS themselves if you are not certain whether you are required to file a return.

Generally most taxpayers will make a filing just to be on the safe side.  The overwhelming majority of people who wonder if they are required to file are most often going to end up with a refund.  To compound the confusion, where you work also makes a difference to whether you should file or not.  For example, if you work for a non-profit organization, there are different rules that determine who and when to file.  If you are self-employed, the requirements may be even more difficult to understand.

Furthermore, for taxes on pensions and savings, the filing requirements differ.  Since the tax code changes so dramatically each and every year, it is impossible to say what each individual's income tax filing requirements really are.  For starters, you should consult your employer and ask him or her whether you should file a return.  The IRS also has a toll-free phone number that is available to call most of the week that will answer your basic tax-related questions for free.  Bear in mind that the penalty for not filing (if you should file) is rather steep.  So do not assume you are exempted from filing.  It's better to find out for sure.  After all, those earning less than $15,000 a year will likely get a refund anyway so you might as well file.

There are even several free, online tax filing systems you can use if you don't want to pay $20 to file your taxes.  You may be eligible for the earned income tax credit if your salary is below a certain amount.  To find out all the relevant tax breaks available to you, consult a tax attorney or accountant.

Darrin T. Mish is a veteran, nationally recognized tax attorney who has focused on providing IRS help to taxpayers for over a decade. He regularly travels the country training other attorneys, CPAs and enrolled agents on how to handle their toughest cases with the IRS. He is highly ranked among the top attorneys in the country, with an AV rating from Martindale-Hubbell and a perfect 10 on Avvo.com. Martindale-Hubbell has also honored him with a listing in their Bar Register of Preeminent Lawyers. He is a member of the American Society of IRS Problem Solvers and the Tax Freedom Institute. With clients on every continent but Antarctica, he has what it takes to solve your IRS problems no matter where you live in the world. If you would like more information about his practice and how he can help you, please call his office at (813) 229-7100 or toll free at 1-888-GET-MISH.

If you ever entertained the notion of evading taxes, perish the thought.  Here are some practical things you can do as soon as you receive those dreaded letters from the IRS.  The essential thing to do when dealing with the IRS is to be polite because the more indifference and the more anger you show, the less likely you will be able to get the help you need.

Just by being nice you are likely to get a lot more cooperation and assistance from the IRS.  Simply saying please and thank you is not going to wipe away what you owe, but it will stand you in a better stead in discussing matters with the IRS.  Let's face it, getting audited and ending up with a massive tax bill is a terrible thing, but being rude and disrespectful on the phone and through correspondence is only going to make things worse.

At the same time, you have to act on all communications with the IRS without delay.  You cannot expect the IRS to cut you a deal if you ignore three months of mailings and phone calls, to only then talk to them and beg for forgiveness. If you are uncertain as to what those mailings mean, seek legal counsel and at the same time find out what your options are.  With proper legal advice, you will be able to engage the IRS in seeking a resolution to your tax debts.  IRS tax evaders often have too big of an attitude problem when it comes to their tax bill and that only makes things worse.

These days, the IRS is will strike a compromise with you on your tax debt.  Think of this new bargaining style as being comparable to what most credit card companies do. They understand that getting some money is better than getting nothing and in compromising, the IRS is actually saving money that would be spent in trying to retrieve the full amount without a compromise.

The final way to avoid being an IRS tax evader is to offer to pay a single lump sum payment of a certain percentage of your total debt as full settlement.  This is obviously the most desirable outcome for the IRS and it can be the best possible one for you, too since it immediately puts this whole sordid episode to rest.  Under such an arrangement, you can expect to pay anywhere between 65-90 percent of your total debt.  Who knows, it may be even be a bit lower.

Darrin T. Mish is a veteran, nationally recognized tax attorney who has focused on providing IRS help to taxpayers for over a decade. He regularly travels the country training other attorneys, CPAs and enrolled agents on how to handle their toughest cases with the IRS. He is highly ranked among the top attorneys in the country, with an AV rating from Martindale-Hubbell and a perfect 10 on Avvo.com. Martindale-Hubbell has also honored him with a listing in their Bar Register of Preeminent Lawyers. He is a member of the American Society of IRS Problem Solvers and the Tax Freedom Institute. With clients on every continent but Antarctica, he has what it takes to solve your IRS problems no matter where you live in the world. If you would like more information about his practice and how he can help you, please call his office at (813) 229-7100 or toll free at 1-888-GET-MISH.