Audits

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• Underreporting income: Failing to report all your income, including side gigs or freelance work, is a frequent red flag.
• High deductions: Claiming excessive deductions relative to your income can prompt closer IRS scrutiny.
• Unreported foreign assets: Failing to disclose offshore accounts or international investments can attract attention.
• Business expenses: Misclassifying personal expenses as business expenses or overstating deductions is a common cause for audits.
• Discrepancies in reporting: Mismatches between the information reported on your tax return and what third parties (such as employers or financial institutions) report can trigger an audit.

Once you’ve been selected for an audit, you’ll receive a letter from the IRS with detailed instructions. It's crucial to respond promptly and accurately, as failing to do so can lead to penalties or even criminal charges in extreme cases. During the audit, the IRS may request various documents such as:

• Bank statements
• Receipts for deductions
• Payroll records
• Business expense documentation
• Investment records

The duration of the audit depends on the complexity of your case and the availability of your records. It can take weeks to months, or even longer in complicated situations.