8 Tax Mistakes You Can’t Afford to Make: Annaly Capital Management, Inc. (NLY), American Capital Agency Corp. (AGNC)

Recommendation: Be sure you have the records to back up the figures on your return so that you can defend your filing during a possible audit.

Many tax benefits require documentation to prove that you’re entitled to them.

For instance, when you give to charity, you should get an acknowledgment letter showing that you made a donation and didn’t get anything of value for it.

But with some donations, such as gifts of vehicles or expensive property, further documentation or even a formal appraisal may be necessary.

Bottom line: Forewarned is forearmed.