IRS TAX AUDIT

Tax Audit Guides & Information on Income Tax Audits 

Are you currently being audited? Do you want to prevent a tax audit? Need help with a tax audit? Just want general information on a tax audit.  

Avoid Tax Audit: Tips on How to Avoid IRS Audits 

To avoid being audited by the IRS, you need a basic understanding of how IRS tax audits work so that you can significantly reduce the odds of getting audited. 

You need to avoid the common mistakes people make resulting in them getting audited. 

IRS Audit Tips: Advice on Beating & Surviving a Tax Audit 

 When we represent clients in a tax audit, there are two goals we have: 

First, is to minimize the financial impact of the audit. 

Second, is to prevent the IRS from auditing beyond the original reasons your return was selected for audit. 

There are no clear-cut rules or formulas of the audit. The IRS can do whatever they want to in an audit. Each IRS auditor is different, and it is important to develop a repour with the auditor. Which is why, I always recommend our client not attend the audit. Client’s often get defensive or offer more information than is required. 

 IRS Audit Procedure: Guidelines for IRS Audits 

It is especially important to understand how the audit process works. To know how and why tax returns are selected for audit. 

Once a return is filed, it will go through a several computer programs to check for errors and for income and deductions that are outside the norm. 

Depending on what the errors you have made or questions the IRS may have, you will be sent an IRS notice/letter saying what kind of audit the IRS is planning to do. 

 IRS Audit Red Flags: Understand Who & When the IRS Audits 

 The IRS computers or personnel will review the return for audit flags that increase your score and therefore the potential that your return will be selected. You need to be aware of these common red flags so that they can be avoided which will reduce your chances of being audited. Sometimes these red flags cannot be avoided, so it is important that your records are kept supporting the item(s) that the IRS is questioning. 

IRS Audit Statute of Limitations: Years Back IRS Audits Tax Returns 

The IRS has three years from the date your return was filed to start an audit. Unless you have substantially understated your income. Then the IRS has six years. If the IRS believes you have committed a tax crime, then there is not statute. 

IRS Audit Letter: Understanding Your Tax Audit Notification 

 You will almost always receive an IRS notice/letter both before and after a tax audit is completed. 

You should always read the letter. DO NOT SKIM THE NOTICE AND THEN PUT it in a pile and hope it will go away. Most notices will require a response.