Best Way To Avoid An Audit Explained By The Killer IRS CPA, Joe Mastriano.

FOR IMMEDIATE RELEASE
Houston, Texas, United States of America (Free-Press-Release.com) May 9, 2011 -- You Can't "Avoid Audit" By Not Filing Your Tax Return

There, I said it. Some people have actually asked me if they can avoid a tax audit by not filing. So file your return in a manner that allows you to avoid an audit. This site has may ways for you to consider.
Report Everything The IRS Has On You

Even if you know the information reported to the IRS is wrong, put down the amount the IRS has. Then make corrections with explanations, from that number to arrive to the number you think is correct. If you are self employed and receive 1099's, list them separately in the income section on the Sch C of your 1040 return. This way they can tie in the total 1099 income you report to the total they have on file. It gives them some comfort that you may be reporting income correctly. Report all interest and dividends, even if it is only $1.00.
Pay Something In Good Faith - Maybe

In my many years of practice, I have never seen the value of a "good faith" tax payment in avoiding audits. Audits are not based on how much liability is remaining unpaid when you file your return. Obviously, paying your taxes will reduce the penalties and interest. So if you know you owe, pay as much as you can. I have a way to almost always have your penalties removed, just for asking. It's in another section in this site.
Chase A Reputable Firm To Prepare Your Returns

I have been on the phone many times with IRS employees. Some of them were forward enough, to tell me their opinion of some of the more well known IRS representation companies. They said that any documents the IRS receives from these companies are scrutinized much more carefully than if they came from a more reputable company. We are considered a more reputable firm.
Sign And Date Your Return

Usually the IRS will just send you a letter requesting your signature. They will probably not audit you for this. Why call attention to your return? Sign it and date it. If filing, married filing joint, then both of you must sign. Don't forge your wife's signature. She may be in our office a few years later requesting that we try to get her out of the taxes based on innocent spouse. She will claim that you forged her signature. Obviously, staying married will prevent that from happening.

More information can be found online at http://www.taxproblem.org/irs-audit/

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