6 Reasons Why You Might Be Audited

Posted on October 1, 2019  •  3 minutes  • 498 words

So, being audited means that the tax authorities want to double-check your numbers. People often have a bad view of being audited and think it’s something sinister. However, most of the time, there’s nothing to worry about. Be honest and tell the truth, and nothing bad will happen. Hopefully, it won’t happen to you. But here are a few reasons why it just might. If you think you’ll need help and are stressing over the situation, you can always look at cra tax audit London Ontario , and see what they can do to help. You Made a Math Error It can be easy for anyone to miss off a zero or miscalculate something, right? But, you need to double and triple-check your math if you don’t want any unwanted visitors. Even if it was unintentional, you would face fines. So, be careful. Not Reporting Some Income This is a sure-fire way to have them come knocking on your door. Maybe you think you can get away without reporting that little side job you do, like freelancing online. But they will find out, and you can get in serious trouble for avoiding taxation here. Using Perfect Numbers Ok, this may sound a little silly. But, if they see a load of $400, $125, $350 and so on, they will be speaking with you in no time. Be as accurate as possible and don’t forget the little 23 cents at the end. Every penny counts. Deducting a Lot of Work Expenses When calculating your expenses , you need to think hard if the item is actually related to your work. For example, an F1 driver could claim a helmet and new exhaust pipe, as it relates to his line of work. But, if you drive for a hobby and put new tires on your form, then you will be in trouble. Be totally sure they are all related to your job. Stating Too Many Losses Just as with expenses, reporting too many losses will put you in the doghouse too. This mainly refers to those who are self-employed. A lot of people will add a lot of items they’ve bought to their losses. But don’t do it. Stay specific and don’t lie when dealing with taxes. Trying to Get a Home Office Deduction Sitting in front of Netflix, and answering a few work emails at home does not count as a home office. This only applies when you have a space dedicated and specific to your business that you work from regularly at home. A lot of fraud is committed regarding home offices. So, Play Fair To some, it may be tempting to try to wriggle out of some of your taxes. It may seem easy, and like you’ll get away with it. But you probably won’t. We don’t you to be paid a visit, so tell the truth. If you have made an honest mistake, own up to it. The repercussions will come back and hit you hard.