There are generally three types of IRS tax audits. Regardless of which type of audit you are undergoing, a tax attorney can handle communications with the IRS employees on your behalf and give your guidance during this process. Correspondence Audits Correspondence...
IRS Audits
WHAT DO IRS REVENUE AGENTS DO?
IRS Revenue Agents conducts tax audits of individual and business taxpayers. They are not responsible for collecting delinquent taxes and instead work to assess the correct amount of tax. Revenue Agent Qualifications Revenue Agents generally have a bachelor’s degree...
IRS ESTATE TAX AUDITS
Estate tax returns can be audited just like any other tax return. However, there are some unique issues to consider when you’re involved in an estate tax audit. Reasons for Audit Larger estates are more likely to be audited. Estates valued below $11.4 million in 2019...
IRS AUDITS FOR UNREPORTED INCOME
Unreported or underreported income is a common reason taxpayers get audited by the IRS. These cases can range from minor mistakes or serious problems. In some cases, the IRS could even pursue tax fraud penalties. How the IRS Detects Unreported Income The IRS receives...
IRS AUDITS FOR UNUSUAL DEDUCTIONS
Taxpayers are entitled to their proper share of tax deductions. But when your deductions are disproportionately large when compared to your income, it could increase your risk of an IRS tax audit. The following are some deductions that may cause an IRS audit red flag...
AUDIT RED FLAGS FOR SELF-EMPLOYED TAXPAYERS
Self-employed taxpayers who use Schedule C have a higher audit risk than other taxpayers. You have the right to claim all of your ordinary and necessary business expenses as a deduction, but the IRS is also more likely to select your return for a tax audit. Your best...
WHAT TO EXPECT DURING AN IRS TAX AUDIT
When you receive a notice that your tax return is being audited, it will generally cause some anxiety. Even if you think you did your taxes correctly, it’s impossible to know with certainty that the IRS won’t find something wrong with your return. The audit process...
When to Appeal an IRS Audit
You’ll have to consider the following factors when deciding whether to appeal the results of an IRS audit: How much money is at stake. Your arguments for disputing the tax assessment. Whether you are able to come to a settlement. The advice of your representative or...
What Happens If You Ignore an IRS Audit Notice?
Ignoring an IRS audit notice can result in an assessment of additional tax, penalties, and interest. If you continue to ignore subsequent IRS notices, you may lose your right to dispute the case in Tax Court, and the IRS can begin trying to collect the tax. Regardless...
What to Do If You Get an IRS Audit Notice
Even the most honest taxpayers get nervous when they receive a notice of an IRS audit. The audit process can be stressful, but many audits can be resolved fairly simply and without even meeting face-to-face with your auditor. If you receive an IRS audit notice, follow...