What to do If Your Tax Return is Flagged by IRS

Tax season brings on additional stress for many. First, the hurry to get your information prepared and submitted for review by IRS. Then follows the thoughts of whether or not your information was submitted correctly or whether you’ll be faced with an audit. 

Ideally, your taxes will be submitted correctly the first time. That being said, if you recognize an error in your return, you should attempt to submit an amended return as soon as possible. While it’s best to fix any mistakes yourself before IRS discovers them, you still may not be 100% safe from a potential audit. 

While there are multiple various aspects of your return that may trigger an audit, there’s also always a possibility that you may be selected at random for review by IRS as well. Regardless of how careful and precise you are in your tax submissions, no one is ever fully exempt from the threat of an audit. 

What happens if my tax return is flagged by IRS? 

There are multiple types of IRS notices that you may receive. Some may simply be sent to request further information or ask for clarification on an aspect of your return. That being said, some IRS notices will alert you of an upcoming audit. 

Your best bet when you receive a notice from IRS is to be prepared for the worst-case scenario. Should you or your business receive notice of IRS’s intent to conduct an audit, you should not initially panic. It’s important that you reach out to appropriate resources as quickly as possible to give them the opportunity to build a case to support you. 

While your CPA is an excellent partner to organize, prepare, and submit your tax return, in the event of a tax audit you may want to solicit additional support. CPAs are tax experts within their field but that does not directly include defending clients against IRS or EDD audits. In this case, a tax attorney may be a suitable addition to your partnership. 

The addition of a tax attorney to your team does not serve to replace the role of your CPA. Rather together, they form a stronger team to represent and protect you in the event of an audit. 

That being said, should you receive notice of an upcoming audit, consulting with your CPA and hiring a tax attorney should be your immediate first response. 

While the receipt of an IRS notice may not have significant effects on you or your business, your safest response is to prepare. In the case of an IRS notice, this likely means reaching out to an experienced tax attorney. Our team of legal experts at Milikowksy Tax Law has significant experience in successfully defending our clients against audits from IRS. To learn more about how we can partner with your existing tax team to support your needs, call or reach out today!