Realtors have notoriously complicated tax returns. With extensive deductions, it is easy to be confused about the best way to file accurately. No matter how meticulously you reviewed your tax documents, mistakes happen, and a tax audit does not mean the end of your business. Real estate professionals are often audited at a higher rate than bigger corporations with larger assets. Because of this, it’s especially important for real estate brokers and agents to remain vigilant in their record keeping and tax filing.
If you’re facing a tax audit from the IRS, speak with a qualified agent about a plan of action that works for you and your business.
How can I avoid being audited?
While accidents happen and are sometimes unavoidable, there are a few steps you can take to avoid an IRS audit in the first place. Here are some steps you can exercise to stay in good standing with the IRS.
- File quarterly taxes
- Only make reasonable deductions
- Be honest about your home office expenses
- Report mileage meticulously
If you are accurate in your recordkeeping and expense deductions, you shouldn’t have much to worry about. If you feel you’ve received an IRS audit that is unwarranted, speak with a tax advisor about your options for mediating with the IRS. An advisor can act on your behalf to rectify the situation with the IRS.
What should I do if I receive an IRS tax audit?
Receiving an IRS audit is scary. It’s normal to feel anxious about dealing with the IRS, and you might even feel lost about where to begin. At 212 Realty, we understand this situation can be challenging, and you might fear the worst for your financial future.
It’s important you don’t let yourself become overwhelmed by fear of the IRS. The sooner you take action, the sooner you can rectify the solution. The best thing you can do is speak with a qualified tax advisor to determine the best plan of action for your situation. The team of experts at 212 Realty can work with both you and the IRS to determine a workable solution. Contact us for a free consultation today.