Hello everyone, today we are going to talk about auto-proofing your tax return. I apologize for the glare caused by the sun, let me adjust my window. Alright, now we should have enough light. So, let's dive into the topic of auto-proofing your tax return. I have prepared a test return to demonstrate what I mean by auto-proofing. We will discuss the red flags that can trigger an audit, as well as strategies to avoid it. Often, you might come across articles listing the red flags that IRS auditors look for. However, they rarely provide solutions to avoid the audit. For instance, one red flag could be making a lot of money or failing to report all taxable income. We will address these issues and also focus on higher-than-average deductions, especially for individuals running a small business. Charitable contributions are another area prone to audits, and I will share a story about a client who made a massive charitable contribution without being audited, which is quite surprising. Now, let's analyze a test case called "Test Tester." Please note that these forms are still in development at the IRS, so some information might be subject to change. Our individual is itemizing deductions and has a significant charitable contribution. We will address this contribution first, followed by his small business, a construction LLC. We will identify and fix any issues related to 1099 forms and other elements on the return. Lastly, I will share my approach to resolving IRS audit issues before they even begin, which I call the "quota graph." The goal here is to avoid an audit altogether because, let's face it, dealing with taxes is not pleasant. Paying them is one thing, but undergoing a lengthy and stressful audit, even when you have done everything correctly, is a hassle. It is time-consuming,...
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Video instructions and help with filling out and completing Form 3520 Audit
