This is our blog category for various posts dealing with IRS Audits. This can include a personal audit of your tax returns, and audit of corporate filings (for corporations, s-corps, partnerships, etc.) or an audit of a specific programs or types of credits such as the ERTC (employee retention tax credit). You can also find more info about how our firm helps you with IRS audits here.
In a bid to support businesses affected by the pandemic, the IRS introduced the Employee Retention Credit (ERC). This refundable employment tax credit aimed to help businesses affected by COVID-19 … Read more
Getting that dreaded letter from the IRS that you are being audited can be an intimidating experience, but it is essential that you remain calm and take the necessary steps … Read more
If you are like so many other Americans you probably agree that there are few things in this world that are more inconvenient or scary than being audited by the … Read more
One of the great parts of representing taxpayers with IRS appeal problems is that the law gives them plenty of rights. One of my favorite is the appeal. The IRS … Read more
This article is part of our series on the 12 Myths About the IRS That Taxpayers Need To Know. The IRS audits less than 1% of the total tax returns filed. … Read more
This article is part of our series on the 12 Myths About the IRS That Taxpayers Need To Know. Here is the Taxpayer Bill of Rights: 1. The Right to … Read more
This article is part of our series on the 12 Myths About the IRS That Taxpayers Need To Know. I talk to taxpayers, clients, and prospective clients either on the … Read more
“Before I get help for my IRS problem, I’m going to go speak personally to the IRS officer or agent. Once they hear what I have to say, I am sure they will understand.” Some people who receive a notice from the IRS think that this is a great strategy because after all, what could go wrong? The answer is EVERYTHING.
The short answer is “probably not.” Less than 1% of tax returns are audited. Generally, there is a reason for the ones that get chosen. When the IRS receives a tax return, they score it. This identifies the tax returns where the numbers are outside the average from someone whose work is similar to the taxpayer.
Being the subject of any tax audit can be stressful, but the intensity magnifies when an audit involves the Internal Revenue Service. Here are a few tips to help you … Read more
Below is an illustration explain IRS tax audits. There is a certain percentage of people every year that is going to be audited. Certain triggers can cause it to be … Read more
Some people would rather face root canal surgery than an IRS audit. According to ABC News, the IRS audited 1.6 million Americans in 2011 alone. This means that about 1% … Read more
I’m tax attorney Steve Klitzner, and my practice is limited solely to representing individuals and businesses with IRS problems. And I don’t just work on cases where someone owes the … Read more
During an audit, the Internal Revenue Service conducts an examination of a person’s or business’s accounts and financial records to check for compliance with the tax codes. Selection does not mean that an error was necessarily made, only that the IRS wants to verify or gather additional information. IRS Publication 556 fully details the audit process and what to expect.
The Audit Process
The IRS selects taxpayers to audit in several ways — some random and some targeted. Upon selection, the IRS notifies the tax payer by letter. In some cases, they call before sending the letter.
An audit may either be conducted by mail or in person depending on what information the IRS is seeking. An in person audit may be scheduled at home, in your office or place of business, or at an IRS office. IRS agents are instructed to be flexible when scheduling an audit, but maintain the final say over when and where it is held.
If the three letters IRS give you nightmares, you’re not alone. The fear of the IRS is a common emotion and one that will send chills down your spine. The good news is the chances of being selected for an IRS audit are relatively low. However, that doesn’t mean it won’t happen. Therefore, we would like to give you some tips on how to prepare for an IRS audit.
Should You Hire a Professional Tax Attorney or CPA?
An IRS tax audit is a very long and stressful process. In addition, understanding the tax code, for most people, is like trying to read a foreign language. It’s extremely difficult, unless you know what you’re doing. Hiring professional representation will ensure that you have someone representing you who has been educated in tax law and will be better able to speak for you than you could for yourself. Additionally, people sometimes unwittingly reveal too much information, information that isn’t required and that could potentially do more harm than good.
If you’ve never been through an IRS tax audit, you probably have some common misconceptions about what actually triggers an audit. Ask ten people what they think would cause an IRS audit and you would probably get ten different answers. Therefore, we thought we would take a few minutes to clear up a few common myths and misconceptions about what does and does not trigger an IRS audit.
Myth #1 – If you e-file, it will increase the likelihood that you’ll be audited.
The process in which the IRS determines which returns should be audited has nothing to do with the way you chose to file your return. E-filing could actually reduce the chances that your return will be audited due to the fact that electronically filed returns are usually more accurate; therefore, if you e-file, your tax return is less likely to trigger an IRS audit.
Steven N. Klitzner, P.A. is a tax attorney based in Miami, Florida. He has been practicing tax law for over 40 years, and currently holds a 10.0 rating by Avvo. Mr. Klitzner was appointed to the IRS Service Advisory Council in 2021 and is... Read more
Steven N. Klitzner, P.A. is a tax attorney based in Miami, Florida. He has been practicing tax law for over 40 years, and currently holds a 10.0 rating by Avvo. Mr. Klitzner was appointed to the IRS Service Advisory Council in 2021 and is... 
