What To Expect During an IRS Audit | Phoenix Taxpayer Tips from a Professional CPA
Are you facing an IRS audit or worried you might be selected? In this video, we walk you through what to expect during an audit, why taxpayers get audited, and how to prepare effectively. Whether it’s a correspondence, office, or field audit, understanding the process is key to staying calm and in control.
🔍 Learn about:
The 3 types of IRS audits
Common audit triggers
How to prepare and organize your tax records
Effective communication with IRS auditors
Your rights, including representation and appeal
If you're a Phoenix resident and need professional audit support, contact the experts at LBS Tax Services today. Our experienced CPAs are here to help you navigate every step.
Are you a Phoenix taxpayer who just got an audit notice from the IRS?
Don't panic, we're here to break it down for you.
In this video, you'll learn exactly what to expect during an IRS audit,
the types of audits, why you might be selected and how to prepare,
straight from the professionals at LBS Tax Services.
An IRS audit is a detailed review of your financial records to ensure your tax return is accurate.
Typically, the IRS looks back at the last three years,
but that can stretch to six if they suspect serious underreporting of income.
You might face one of three types of audits.
Correspondence audit, done by mail.
Office audit, you meet at an IRS office.
Field audit, an IRS agent visits your home or business.
Each has its own level of intensity and preparation required.
Only about 1 in 160 taxpayers get audited each year,
Report zero income.
You claim large or unusual deductions.
You forget to report W2S or bank interest.
These red flags can put you on the IRS's radar, so it's important to be accurate and consistent.
Preparation is key.
Start by organizing all relevant tax documents, receipts, returns, bank records in one place.
Review your past returns for consistency and if possible,
consult a tax professional before the audit even begins.
They can help you anticipate questions and avoid common mistakes.
You'll first receive a letter from the IRS telling you what type of audit you're facing.
From there, correspondence audits usually ask for specific documents by mail.
Office audits involve an in-person appointment.
Field audits are the most comprehensive and may involve
a full review of your business records on-site.
You'll receive a final report, form 4549,
which details the IRS's findings and any changes to your tax liability.
Don't forget, you have the right to representation throughout this process.
Communicating with the auditor is crucial.
Keep these tips in mind.
Only share what's asked.
Don't volunteer extra information.
Keep responses clear and direct.
Stay professional and polite and consider having a CPA or tax attorney speak on your behalf.
At LBS Tax Services, we specialize in helping Phoenix taxpayers like you
confidently handle IRS audits.
Our CPAs know the system inside and out and will stand by you through every step,
whether you need audit representation, bookkeeping, or expert financial planning.
Don't face the IRS alone.
Contact LBS Tax Services today and let us help you protect your finances and your peace of mind.
Contact us 480-664-1249.
