Tax Prep Red Flags NJ | How Clean Books Prevent IRS Issues

Tax Prep Red Flags NJ — What Triggers IRS Scrutiny

Every year, certain filings attract unwanted attention from the IRS or NJ Division of Taxation. Fortunately, keeping your bookkeeping organized can eliminate most tax prep red flags NJ before they ever arise.

Step 1: Watch for Common Red Flags

• Unusually high deductions compared to income

• Missing or mismatched 1099 and W-2 forms

• Large charitable contributions without documentation

• Unreported income or side earnings

These are the most common triggers for audit letters or IRS inquiries.

Step 2: Keep Records Clean Year-Round

Consistent recordkeeping is your best defense. Accurate bookkeeping practices ensure every number on your return ties back to real documentation.

Step 3: Reconcile Before You File

Before tax season, confirm that all bank and credit card accounts match your financial statements. This catches misclassifications or missing expenses.

CPA Tip:

A clean ledger removes 90% of tax prep red flags NJ business owners face. Clean data = smoother filing and faster refunds.

File Confidently, Not Fearfully

If you’re worried about errors or missing receipts, book a free consultation → with Gregory Monaco, CPA LLC. We’ll review your books and make sure your tax preparation is rock solid.