If your reported income seems a little high or low, chances are you might hear a knock on your door from the Internal Revenue Service. We know the tax filing process is a colossal headache.
But unless you’re evading taxes like Al Capone—and we don’t recommend that at all—the IRS understands how complex the U.S. tax code is to the average person and small business. So, they will usually write off honest mistakes. But, without taking precautionary measures, auditors may misconstrue your honest mistakes for negligence and assess you penalties.