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IRS Audit

The Internal Revenue Service audits thousands of taxpayers in any given year. In general, the IRS can audit tax returns filed in the last three years in an audit. However, if the IRS identifies a substantial error(s), up to six years maybe added.

The process begins with an extensive review of individual or business tax returns and confirm the tax information matches what the IRS has on file. Most audits are conducted by certified letter and request certain itemization deductions and informational items, in which you are assigned an agent to work with directly by telephone and then correspondence via email and postal mail.

How do I know if I will be selected for IRS Audit Examination?

Most common reasons taxpayers will get selected for an IRS Examination include:

  • Simply Randomly Selection and your tax return was selected purely based on computer program
  • There is a mis-match in what was reported to the IRS and what is on file with the IRS
  • Reported information is outside the standard for a particular line item. Example: Miles Deduction or Charitable Contributions
  • Tax Returns applying for Credits

In sum, the IRS has many tools available at its disposal to investigate taxpayers including variance analysis and artificial intelligence.

The IRS can compare to year income and expense items to see major differences and go after those taxpayers.

Call 818-576-1500 for a free, no-obligation phone appointment with a live CPA, or schedule a meeting here.