What to Expect During an IRS Audit
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An IRS audit sounds intimidating, but most audits are handled through the mail and resolved without major issues. Here's what you need to know.
Types of Audits
Why Audits Happen
The IRS selects returns for audit based on several factors: random selection, unusual deductions relative to income, discrepancies between your return and information returns (W-2s, 1099s), related examinations of business partners or investors, and certain red flags like consistent business losses or large charitable contributions relative to income.
What the IRS Will Ask For
How to Prepare
Respond promptly to IRS correspondence — ignoring letters makes things worse. Gather all requested documents and organize them clearly. Don't provide extra information beyond what's requested. Consider hiring a tax professional to represent you.
Your Rights During an Audit
You have the right to professional and courteous treatment, to representation by a CPA or enrolled agent, to appeal disagreements within the IRS, and to stop the audit at any time if you feel uncomfortable.
Audit Support at Supreme Level Tax
If you receive an IRS notice, don't panic. We provide audit support services to help you navigate the process with confidence. Contact us today.
Supreme Level Tax
Professional tax preparation, bookkeeping, and planning serving Santa Maria and the Central Coast.
This article is for informational purposes only and does not constitute professional tax advice. Consult a qualified tax professional for advice specific to your situation.
