Being singled out for an audit can be nerve-wracking, especially if you aren’t sure what the process entails. Fortunately, most tax return issues may be relatively easy to resolve, especially if you have the help of an experienced attorney. To alleviate some of the stress of this difficult situation, here are the answers to some common questions about IRS tax audits.

What to Know About Tax Audits

Why are returns selected?

Many audits are triggered by a discrepancy between a taxpayer’s reported income and what the IRS has on file. Claiming many deductions and several consecutive years of losses also attract the IRS’s attention, and some returns are selected at random.

How are IRS tax audits resolved?

Fortunately, for individual taxpayers, most IRS audits can be resolved simply by mail. However, in some instances, you’ll need to meet with an auditor in person to answer questions about your finances.

Will I have to pay more taxes?

The outcome of an IRS tax audit depends on the specific issue and the expertise of your representative. If you can prove that your returns were correct, you may not have to pay additional taxes. However, if the IRS determines that you made a mistake, they’ll likely assess previous taxes, along with applicable fees and penalties.

Should I just send all my information?

Whether you’re being audited by mail or in-person, it’s best to limit your response to the scope of the audit. Otherwise, the auditor may find other issues and extend the audit to other areas of your finances.

If you’ve been singled out for an IRS tax audit, contact Attorney Brian Kawamoto in Aiea, HI. This tax attorney and his team guide Oahu residents through IRS audits, ensuring you achieve the best possible outcome. To schedule a consultation, send a message online or call (808) 486-6107.