The Dreaded Audit

Few things strike fear into the hearts of taxpayers like the prospect of an IRS audit.

The fear of being audited by the IRS is pervasive among taxpayers. The idea of facing scrutiny, potential fines, and even legal consequences can be paralyzing.

But fear not! We’ll delve into the audit process, offer strategies for minimizing your audit risk, and provide guidance on what to do if you find yourself under IRS scrutiny

There are three types of audit. The first is the correspondence audit. This audit is very simple. The IRS asks for one or two documents and if they are satisfied, the audit report is issued.

The second type of audit happens in the local IRS office. In this case, taxpayers are asked to bring in a lot of information for the IRS to review. Most of these are now done virtually with documents faxed to the IRS office.

The third and most aggressive audit is the on-site audit. This audit often results in the agent fishing for opportunities. The auditor wants to see the home or office of the taxpayer. This is a very serious audit.

To minimize audit chances or impact, have all records on hand. Often correspondence audits are escalated because the auditor believes there is more than the has been presented. In all cases, the taxpayer should be represented. At Books, Taxes & More, we are here to represent taxpayers and will do all the talking for the taxpayer. This is not a do it yourself exercise. Let us be your advocate.