Filing taxes is somewhat stressful to begin with — which can make getting audited by the IRS a truly frightening experience. While working with an attorney will help you achieve a more favorable outcome to this situation, you can also have greater peace of mind when you better understand the auditing process in the first place. Here’s what you should know.

Who Gets Audited?

While official numbers from the IRS reveal that less than one percent of all tax returns get audited, there are still key factors that can greatly increase your chances for an audit. Most people are selected for an audit due to red flags such as math errors, failing to report income, or claiming too many losses or work expenses.

Audits are also likely if third-party reports from W-2 or 1099 forms conflict with what you submitted in your taxes. Individuals who work out of a home office or earn a high income are also more likely to be audited.

What Happens During the Audit Process?

Most audits are actually handled via mail to address math errors or missing paperwork. However, depending on the severity of the issues with your finances, you may be asked to visit a local IRS office, or even have an agent go over the files at your home or business.

If you are subjected to an audit, it is a good idea to have an attorney help you go over your documents to determine what could be the problem with your tax return. Be sure to provide all information requested by the IRS for your audit. Remember, you have the right to representation, and can appeal disagreements if you are charged a penalty.

Whether you’re facing a tax audit or filing for Chapter 7 bankruptcy, working with an attorney at Pearce Law Firm in Baldwin County, AL will help you deal with your financial trouble. By helping you understand your options and the pros and cons of each strategy, they will help you find the best legal solution for your situation. To learn more about their services or to request a consultation with an attorney, visit them online or call (251) 971-2676.