Here are your odds of getting audited by the IRS, courtesy of the IRS and found in the Journal of Accountancy, Tax Matters, April 2012, page 59.
If you filed your tax return as an individual in 2011, the odds of getting audited depend on your reported income level and vary from 1% to 12.5%:
Income under $200K – 1.02%
Income $200K and higher – 3.93%
Income $1 million and higher – 12.48%
If you filed as a business, here are you chances of getting audited:
Total – 0.63%
Sub S – 0.42%
Partnership – 0.40%
Nonprofit – 1.36%
Assets …

From www.irs.gov: Tax Tip 2012-07
The tax deadline may have just passed but planning for next year can start now. The IRS reminds taxpayers that being organized and planning ahead can save time, money and headaches in 2013. Here are eight things you can do now to make next April 15 easier.
1. Adjust your withholding Why wait another year for a big refund? Now is a good time to review your withholding and make adjustments for next year, especially if you’d prefer more money in each paycheck this year. If …

Frow www.irs.gov: IRS TAX TIP 2012-71
Keeping good records after you file your taxes is a good idea, as they will help you with documentation and substantiation if the IRS selects your return for an audit. Here are five tips from the IRS about keeping good records.
1. Normally, tax records should be kept for three years.
2. Some documents — such as records relating to a home purchase or sale, stock transactions, IRA and business or rental property — should be kept longer.
3. n most cases, the IRS does not require you …

From www.irs.gov: Tax Tip 2012-58
If you make a mistake on your tax return, it can take longer to process, which in turn, may delay your refund. Here are eight common errors to avoid .
1. Incorrect or missing Social Security numbers:
When entering SSNs for anyone listed on your tax return, be sure to enter them exactly as they appear on the Social Security cards.
2. Incorrect or misspelling of dependent’s last name:
When entering a dependent’s last name on your tax return, make sure to enter it exactly as it …

A decision to work in your home is likely to impact both your personal life and your business. Even if you carefully separate the business areas of your home from the residential portions, the existence of the home office can create conflicts that you wouldn’t face in an office located away from your home. Friends and family might not fully understand the implications of a home office and may need some time to adjust to the fact that you require uninterrupted work time, even though you are at home.
Factors to …