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# How to Not Get Audited

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<!-- video src="https://cdn.jwplayer.com/manifests/3P6k1ncs.m3u8" -->
## Video: How to Not Get Audited

[Watch (HLS stream): How to Not Get Audited](https://cdn.jwplayer.com/manifests/3P6k1ncs.m3u8) (1:24)

![How to Not Get Audited](https://cdn.jwplayer.com/v2/media/3P6k1ncs/poster.jpg?width=720)

_Published 2016-02-23. Tax season is upon us. Here are some tips on how to avoid being audited._


---

Jul 27, 2023 7:38 PM UTC

---

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---


## Transcript

Tax season has arrived, and the good news is that the IRS confirms that it will continue to do fewer audits. And that's after the chance of being audited hit its lowest point in 2015 in more than a decade. Still, about a million Americans will likely be audited this year. Here are some ways to avoid being one of them. First up, file electronically. 21 % of paper returns had errors, as opposed to just 0. 5 % of electronic returns. Second, don't forget to report all your income. Side income still counts, and you better believe the IRS has a list of your W- 2s. And 1099s and is checking it twice.

Third, when claiming big tax deductions, make sure you show them the receipts, literally. Over documentation is the best documentation. Next up, stock. Step away from claiming business use of that vehicle, unless you mean it. If you don't have a separate car specifically for work. Claiming you use yours only for business will raise red flags. The same goes for health insurance. Don't claim it if you don't really got it. If you forego health insurance under the Affordable Care Act, you will have to pay a penalty. And if you claim to have insurance on your tax forms and you don't the IRS will find out.

So basically the biggest rule for doing your taxes is kind of the biggest rule in life, be true to yourself.

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