What is a Tax Audit?

A tax audit is when the IRS or state taxing agency reviews your tax returns to determine if income, expenses, and credits are reported accurately. It will begin with a letter, notice, or phone call. You may also receive a list of records you will need to produce and a request for an appointment.

What is the IRS looking for?

This varies on a case-by-case basis, but in general:

1. The IRS wants to verify that you have reported all of your income from every source properly.
2. The IRS wants to see your receipts and proof of payment for the various expenses that you have claimed on your tax return.
3. If there is unreported income or expenses that cannot be documented, the IRS will make adjustments to the tax return you filed resulting in a balance due plus interest and possibly penalties.

TaxResources has decades of experience dealing with tax audits and we can help you make sense of your audit. Please check out our audit defense protection services today!