Some Georgia residents may have a difficult time dealing with their tax obligations. As a result, they may think that not filing their tax return could help them avoid some of their tax-related issues for a time. However, that action is more likely to result in a tax audit than a reprieve from tax responsibilities.
One of the biggest reasons not filing a tax return could lead to an audit is that employers provide employees’ tax information to the IRS. As a result, the IRS would notice when an employer provides this information and the applicable employee does not file a return of his or her own. Unfortunately, this issue could then result in the employee facing additional fines and penalties for filing late or attempting to evade taxes.
Other inadvisable ways that someone may attempt to avoid their tax obligations include the following:
- Claiming a significant amount of itemized deductions
- Claiming large charitable donations
- Not reporting all of one’s income to the IRS
- Deducting hobby-related losses
These and many other attempts to tweak one’s tax information could quickly lead to an issue with the IRS. Of course, if Georgia residents report significant deductions or donations because it reflects the reality of the situation, they should have the receipts and records to back up that information. Any time taxpayers face a tax audit, it is wise to make sure that they fully understand the reasons for the audit and what they could do to defend against any claims from the IRS. Fortunately, experienced tax law attorneys may be able to help interested parties with such a predicament.