Definition
An IRS audit is a review or examination of an individual’s or organization’s financial information and tax returns to ensure that income and deductions are reported accurately and comply with U.S. tax laws.
Related Services
Tax resolution services, forensic accounting, audit defense, CPA consulting, legal tax representation, and compliance risk management.
Problem and Application
An audit can be triggered by red flags like underreporting income, excessive deductions, mismatched information, or random selection. Audits can be conducted by mail, in-office, or on-site. Failing an audit can result in back taxes, interest, penalties, or legal action. Businesses and individuals need detailed recordkeeping to survive an audit.
Conclusion
An IRS audit, while stressful, is a routine part of tax compliance enforcement. Proactive, accurate tax filing, supported by solid documentation and professional guidance, reduces audit risks and ensures smoother resolutions if one occurs.
