Why Was Our Tax Return Selected for an IRS Audit?

We are often asked “Why was our tax return selected for an IRS audit?”  If you have received a notification from the IRS of their intent to audit your tax return(s) your first step should be to gain an understanding of what to expect from an IRS audit.  You should never contact the IRS directly, or provide information – especially in an attempt to get on the auditor’s “good side.”  We invite you to call for a free and substantive phone consultation, to discuss your unique circumstances and the issues the IRS wishes to audit.

When is a tax return selected for an IRS audit in Southern California?  In all likelihood an element of your return fell outside of the statistical “norms” for an issue the IRS is focused upon.  Each year the IRS secretly identifies behaviors that groups of taxpayers use to reduce or avoid paying taxes, and develops a systematic approach to identify likely targets using a “bell curve” analysis.  When you statistically plot a data point, the shape the results usually create is a “bell” which is broad at the base and then curving up to the top where it crests.  The statistical norm is represented by the middle section of the bell, and those that fall outside of the range established by the IRS are likely to be audited.

If you are facing an IRS audit you are probably wondering “Why was our tax return selected for an IRS audit?” There are several things you need to understand up front before contacting the IRS.  We invite you to review our free PDF entitled “What to Expect from an IRS audit” to begin to educate yourself on how to handle yourself, communications and the process of an IRS audit.

Learn about the protections of the attorney-client privilege.  We invite you to contact us or call us today to schedule a free and substantial consultation at 866-631-3470.  The experienced tax attorneys at Allen Barron will develop a strategy to keep your exposure to the IRS at an absolute minimum.

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