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This past few weeks I’ve been sharing queries that you can ask your tax professional to notify whether or not your tax preparer is advisable for you.

Does reading this inquiry make you wonder if your tax preparer is doing everything promising to reduce your audit risk?

Some people have a worry of being audited. Allow me to share some common issues I hear:

They are worried their tax return has mistakes They are anxious about having the ability to provide the specified information They worry about the fee. Most people concentrate on the price of taxes, charges and interest that can be owed, but what about the cost of appointing a tax expert to handle the audit? Expert fees incurred during a median audit are 10 to 15 times the fee to arrange your tax return!

The IRS Is Increasing Up Its Efforts Now, there can be even more reasons to add to the list. The IRS is increasing up its efforts to improve overall compliance.

The IRS is doing 3 times as numerous audits as they did just a few years ago In addition, due to this economy, the IRS is anticipated to continue to improve the number of audits performed.

The IRS currently introduced its assurance to look at 6,000 business returns. The IRS will focus on payroll tax and employment problems, including worker classification (like independent contractors), officer’s compensation, fringe settlement and non-filers.

The IRS is also stepping up its hard work with value to tax return preparer compliance. The IRS is sending letters and traveling to thousands of tax return preparers to, along with other things, talk about common errors.

By the way, on the list of common errors being mentioned is reviewing significant books and report of a taxpayer. When you read my report last week, this is one of the questions I suggested a tax return professional be asked!

Through these increased hard work, audit risk is a must to consult with your tax professional.

Here are some things to look for to see if your tax preparer is using the proper steps to minimize your audit risk.

Does your tax preparer ask you queries? Inquiries indicate that your tax preparer is trying to validate details and gain a proper understanding so your tax return is submitted accurately. One of the reasons returns are audited is for the reason that information is incorrect.

Does your tax preparer possess the competence you require? Working with a tax preparer who understands the details of the industry makes a distinction, particularly when it comes to submitting an correct income tax return.

For example, some industries must ensure tax elections so that you can properly claim tax benefits. A tax professional with expertise in this type of business will know the rules, and will be aware of the inquiries to ask you to ensure the election is correctly filed.

Even the IRS is concerned about tax preparers knowing the policy. Starting this year, all tax return preparers have to register with the IRS, along with some cases, some should even pass a test.

Does your tax professional talk about submitting strategies with you? Often times when I submit a tax return, there are relevant things that may be done to attenuate audit risk.

For instance, let’s say there is a larger than common deduction to claim. There are various situations wherein a large deduction might draw scrutiny in the IRS. This is exactly an example of the situation where filing strategy can help minimize audit risk.

First, where the deduction is claimed regarding income tax return can influence audit risk. In this case, I would ask the taxpayer questions on the deduction to get a better understanding so I could then determine which rules apply. In several cases, more than one procedure applies and that may provide an opportunity to reduce audit risk.

Next, voluntarily attaching documentation to explain the larger than common deduction can impact audit risk. If the return is flagged because of the big deduction, an agent will assess it and the extra documentation may resolve the problem with no further action taken.

Does your tax professional offer an audit security plan? An audit defense plan covers professional fees incurred in connection with an income tax audit, examination, assessment, investigation or verification of any item(s) in your federal or state income tax forms.

While an audit security plan does not insure you will not be audited, it does cover that the preparer fees to handle a federal or state income tax audit of a tax return are covered. The audit defense plan also contains responding to federal or state notices received.

When a tax professional offers an audit resistance plan, it shows the tax preparer is thinking about audit risk and has an incentive to minimize it.

To know about how to best file your 2011 Online Income Tax return, visit my website http://www.taxreturnonline.org