The odds of winning the lottery make it very unlikely that you will ever win millions of dollars with a $2 ticket investment. Very, very unlikely. Yet someone always wins, making ticket purchases more enticing than they have any right to be.
With an IRS tax audit, the situation is in reverse. No one wants to beat the odds and "win" an Internal Revenue Service audit. Yet someone always does. Forbes notes that while there is an element of chance involved, there are things that you can do to reduce your risk of being audited.
We have noted here in our Cleveland tax blog before that the IRS is conducting fewer audits these days, but that doesn't mean anyone should take foolish risks when filing tax returns.
If you own a family business and have complex business assets and investment structures, work with your accountant to ensure that your tax filings are "pristine," Forbes contributor Robert W. Wood urges. If you are audited, the agency could well want to see documents supporting deductions and claims, yes, but also on "virtually everything," which could include charitable giving, gifts, information about trusts, assets and excise taxes.
Best to be cautious and clear, Wood cautions readers. No one wants to be contacted by an IRS auditor.
But if you are audited, remember that you can contest the findings of an audit in tax court with representation by a qualified tax attorney. The experienced tax lawyers at Robert J. Fedor, Esq., L.L.C. can represent you in all IRS audit meetings, hearings and court proceedings.