How to keep the IRS off your back

Well folks, tax filing season is pretty much upon us and nobody likes getting the IRS all up in their business. Keeping them at bay isn’t hard, just avoid some of the common {mistakes} that some people make.

1. Don't think you can hide 1099 income. If you got a 1099 for something, the IRS got a copy of it too. They know about it. You’re not going to sneak one by them if you don’t report it. (yes, people really do try this)
2.  Don’t claim the kid your pesky ex already claimed. Unless you have a properly executed Form 8332, you probably won’t win that fight if you don’t file first. And speaking of that pesky ex, don’t fudge the amount of alimony you paid (or received). The IRS compares the amounts listed on the two returns and audits the payer if they’re different. If the payer is able to prove what they paid then they go flog the recipient with the information they got from the audit of the payer. The worst kind of tax trouble is that brought upon you by your ex.
3. Don’t make things up. The IRS has seen it all and nobody is going to believe that a 24-year-old single guy gave half of his income to charity.
4. Don’t brag about your successful tax fraud on social media. It’s widely rumored (they won’t admit to it) that the IRS is watching Facebook and Twitter for signs of tax shenanigans.
5. Don’t take your hobby and try to call it a business to write the loss off every year. The IRS has criteria for determining whether or not you have a profit motive and if you don’t, they’ll disallow all those losses.
6. Don’t report your thriving business on your Schedule C. Get yourself an LLC or corporation. The audit rates for those two entities are drastically lower than individual returns with a Schedule C attached.
7. And last, but certainly not least, don’t fall for anybody’s “taxes aren’t legal!!!!” scam. That darned ignoble 16th amendment to the constitution makes it legal (in addition to countless laws enacted since). I’m looking at you, Wesley Snipes.

Questions?