When you have serious tax issues, you need someone who knows tax law

Why will the IRS initiate an audit?

Matters related to tax laws can be complicated and confusing. When an individual or a business learns of an audit into his or her finances and tax history it can be overwhelming. While the prospect of an audit can be difficult, a Georgia taxpayer has the right to take steps that will allow him or her to respond to the audit and pursue the best possible outcome. It may be helpful to first understand the most common reasons why the IRS decides to initiate an audit. 

Things that will trigger an audit 

Many taxpayers will go their entire lives without experiencing an audit, but it is beneficial for each person to be prepared and know what to do if they get an audit notification from the IRS. There are certain things that may catch the attention of the IRS and trigger an audit, and these are the most common things that may trigger one: 

  • Failure to report some income 
  • Making mathematical errors on a tax return 
  • Deducting too many business expenses 
  • Reporting too many losses or claiming too many charitable donations 
  • Using too many round numbers 

The way that a taxpayer responds to an audit can make a significant difference in the outcome, and it is prudent to know how to proceed. 

Resolution of tax issues 

Tax issues, such as an audit, are not easy matters to address. It may be beneficial for an individual to seek the counsel of an experienced Georgia tax law attorney to better understand how to best navigate this process. Legal guidance is critical when facing the complications of the audit process.