What to Do If You Disagree With an IRS Audit Result
The IRS examined your return and concluded you owe more than you reported. You believe they’re wrong. This is not the end of the road — it’s actually just the beginning of a formal dispute process with multiple stages, each offering a genuine chance to resolve the issue in your favor. First: request a conference […]
How to Respond to an IRS Audit Letter: The Right Way
Your written response to an IRS audit letter is the foundation of your entire case. A clear, organized, professional response moves the audit toward closure. A defensive, incomplete, or rambling response keeps it open — or makes things worse. Here’s how to write one correctly. Before you write anything: understand the request Read the notice […]
IRS Audit Red Flags for Self-Employed People
If you file a Schedule C, the IRS pays closer attention to your return than it does to a standard W-2 employee. Self-employed filers are audited at roughly 4.4 times the rate of salaried workers — not because they’re dishonest, but because self-employment offers more opportunities for inaccuracy (intentional or not) and because cash income […]
How to Survive an IRS Audit: A Step-by-Step Guide
The moment you open an IRS audit notice, one instinct kicks in: panic. Resist it. Most audits are correspondence audits — resolved entirely by mail, focused on one or two items, and closed without any additional tax owed when handled correctly. Here is exactly what to do, step by step. Step 1: Read the notice […]
What Triggers an IRS Audit — The 12 Biggest Red Flags
The IRS doesn’t randomly select returns to audit. Its Discriminant Information Function (DIF) scoring system assigns every return a numeric score based on how far it deviates from statistical norms for similar taxpayers. High scores get a second look. Here are the 12 patterns that most reliably raise that score. 1. High income The simplest […]
What Records Does the IRS Expect You to Keep — and For How Long?
Most people either keep too little (and discover this problem during an audit) or keep everything forever (drowning in boxes of old paperwork). The IRS has specific rules for how long you need to keep different types of records — and knowing them protects you without burying you. The general rule: 3 years The standard […]
3 Types of IRS Audit: Which One Did You Get and What Does It Mean?
Getting a letter saying you’ve been selected for an “examination” is alarming. But the word “audit” covers three very different experiences — and knowing which type you’re dealing with is the first step to responding correctly. Type 1: Correspondence audit (most common) The vast majority of IRS audits are correspondence audits — handled entirely by […]
What Records Does the IRS Expect You to Keep — and For How Long?
Most people either keep too little (and discover this problem during an audit) or keep everything forever (drowning in boxes of old paperwork). The IRS has specific rules for how long you need to keep different types of records — and knowing them protects you without burying you. The general rule: 3 years The standard […]
Offer in Compromise: Who Actually Qualifies and What’s the Real Process?
You’ve seen the TV ads: “The IRS wants to settle your tax debt for PENNIES ON THE DOLLAR!” The reality is more complicated — but for people who genuinely qualify, an Offer in Compromise can genuinely be life-changing. Here’s the honest version. What an OIC actually is An Offer in Compromise is a formal agreement […]
Home Office Deduction: Simplified vs. Regular Method — Which Saves More?
The home office deduction is one of the most valuable available to self-employed workers — and one of the most misunderstood. Let’s clear up who qualifies, how each method works, and how to decide which one to use. Who qualifies? You must use a specific area of your home regularly and exclusively for business. This means: Method […]