IRS Audit Season: What Every Taxpayer Should Know

Tax season is ending, but dealing with the Internal Revenue Service may not be. Now that taxes are filed and payments submitted, we are entering audit season. If you think you can deal with the IRS on your own you could be fighting an uphill battle.

The IRS fired 20,000 workers in 2025 and are now using AI bots to review tax filings and triggering audits. If your return gets flagged for further investigation you could be stuck dealing with a system that is not set up to make the process easy for you. Trying to get a human on the phone is challenging.

Red flags that can trigger an audit include:

·      unreported income

·      large deductions

·      excessive business expenses

·      home office deduction

·      foreign bank accounts

·      multiple years of losses for the last 3 to 5 years

By keeping detailed records, documenting deductions, using bookkeeping software and checking for errors can minimize the risk of an audit.

If you get a notice from the IRS for an audit or intent to levy your assets contact them immediately. Do not wait!

Assets the IRS can levy:

·      garnish wages

·      seize funds from your bank account

·      seize and sell your vehicle

·      seize real estate

·      seize other personal property

When dealing with the IRS know what your rights are. You have the right to a tax resolution professional to assist in resolving your case. A tax expert has knowledge and experience in dealing with the IRS and can recommend a course of action for you. They can communicate with the IRS on your behalf and bring resolution to your case.

The IRS conducts audits either by mail, where you are required to mail them requested documentation, or an in-person interview. The interview can take place at the IRS office, your home or place of business.

If you ignore notices and the IRS intends to levy, you must contact the IRS within 21 days or your monetary funds will be sent to the IRS. A freeze will be placed on your account when the levy notice is issued cutting off access and making it impossible to move them.

If you receive an IRS notice:

·      Do not ignore it.

·      Understand if it is an audit by mail or in-person.

·      Gather documentation.

·      Respond by the deadline and request an extension if needed.

·      Hire a tax professional to represent you.

The goal of a tax resolution professional is to resolve your case with the least amount of negative impact to you and your assets. No one wants the IRS seizing assets to settle a tax bill.

Keep in mind the IRS can and does make mistakes. There are situations where the IRS

made a clerical error and individuals are facing levy and seizure of assets. Do not let this happen to you.

Call a tax professional right away to guide this process and bring about a resolution and close your case.

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