Income Reporting

• 1). Report all of your income. Any type of income you receive should be reported when you file your taxes. Omitting income will raise a red flag with auditors and increase your chances of being audited. Even tips and cash payments should be reported.
  
  
• 2). Double-check your math after you complete your tax return. Errors in your math are another way to get noticed by the IRS. If necessary, use a straight edge so that your numbers and figures are entered in the correct place on your tax forms.
  
  
• 3). Filing your tax returns jointly with your spouse reduces your chance of being audited.
  
  
• 4). Sign your tax return. Failing to do so will increase your chances of being audited. If you paid someone to prepare your taxes, make sure they mail the paperwork.
  
  
• 5). Verify that all of your personal information has been entered correctly on your tax forms. If one digit in your Social Security number is entered incorrectly, your chances of being audited will increase. Any errors with your information will give the IRS the impression that you are trying to hide something.
  
  
• 6). Watch your itemized deductions. If you have deductions that seem excessive when compared with your income, you will draw attention from the IRS and increase your chances of being audited.