Mistakes during an audit can be expensive. Skyview Tax Resolution is here to help you navigate the process with confidence.
Less than 1% of all tax returns are audited each year. While some are chosen at random, others are flagged by computer screening. To reduce your chances of being audited, avoid common issues such as:
Not reporting income
Excessive business losses on Schedule C (for self-employed taxpayers)
Calculation errors
Mixing personal and business expenses
Claiming questionable deductions
If selected for an audit, the IRS will notify you by mail. The letter will outline the type of audit and the next steps. At this point, it’s wise to consider professional audit representation to gather documents, manage paperwork, and communicate with the IRS on your behalf.
Once the audit is complete (which can take several months to over a year), you’ll receive an examination report (Form 4549). Based on the findings, you may owe more taxes, nothing at all, or even receive a refund. If you disagree, you have 30 days to request a review or file an appeal. If you agree, you’ll sign the report or a similar form depending on the audit type. Any additional tax owed must be paid in full or set up under a payment plan.
If the IRS initiates an audit, your return will fall under one of four audit categories:
Randomly selected returns may undergo a line-by-line audit, where every part of your return is carefully reviewed. This is one of the most detailed audit types.
The most common type, handled entirely by mail. You’ll be asked to provide proof for certain deductions or discrepancies, such as receipts, checks, or donation letters. Once submitted, the issue is usually resolved quickly.
In rare cases, an IRS agent may visit your home, accountant’s office, or business location. These audits are more invasive and often apply to taxpayers earning over $100,000.
Sometimes, the IRS may request you to meet in person at a local IRS office to answer questions and provide documents. You’ll be given a set date, time, and a checklist of items to bring.
While correspondence audits can often be handled alone, we recommend professional representation for office or field audits. These can be more complex and may result in higher tax liabilities if mishandled. At Skyview Tax Resolution, our team has the expertise to guide you through every step. Contact us today for a free consultation.
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