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How to Prepare for a Financial Audit or IRS Examination

An IRS audit or financial examination doesn’t have to be a nightmare—if you’re prepared. Whether you’re selected randomly or due to red flags on your return, the key is to stay calm, be organized, and respond strategically. With proper representation, many audits can be resolved with minimal disruption.

Types of Audits

  • Correspondence Audit: Conducted by mail, usually limited to one or two items
  • Office Audit: Conducted at an IRS office with a broader scope
  • Field Audit: Most comprehensive, conducted at your home or business

Common Audit Triggers

  • High income
  • Large charitable deductions
  • Inconsistent 1099 or W-2 reporting
  • Schedule C losses
  • Cryptocurrency transactions
  • Foreign accounts or assets

Preparation Checklist

  • Gather documentation: receipts, logs, statements, invoices
  • Review your filed return and ensure your reported figures are supported
  • Avoid volunteering additional documents or information beyond what is requested
  • Consult a CPA or tax attorney before speaking directly to an auditor
  • Maintain professionalism and promptness in all correspondence

How We Help

  • Communicate directly with auditors on your behalf
  • Organize and present your records for maximum clarity
  • Challenge unfair adjustments and negotiate settlements

Preparing for an audit? Our team provides experienced audit representation to protect your interests. Reach out today.

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