Tag: irs audit

How to Prepare for an IRS Audit

Written by Paul Belfiore on August 14, 2020. Posted in Blog, Taxes.

Hudson, NH Resident Seeks Advice

While the number of individuals audited is small in comparison to returns, it does not necessarily imply a suspicion of criminal activity. Tax returns that have any unusual deduction, conflicting calculations or are missing paperwork may be flagged for an audit. After you receive a letter from the IRS indicating that you are being audited you will have thirty days to respond. In the letter, the IRS will indicate the paperwork that is needed and these 30 days should be used gathering this information and supplying it to the IRS.

What Are Some Red Flags for an IRS Audit?

Written by Paul Belfiore on June 17, 2019. Posted in Blog, Taxes.

Goffstown Resident Inquires

Certain activity, even when legitimate can increase your risk for an IRS tax audit. Some deductions can make an audit more likely including home office, business meals and travel, unreimbursed business expenses and alimony. Errors in math on your return and not reporting taxable income, in the form of 1099s and W2s, are also all red flags.

A resident in Goffstown, NH was concerned about running the risk of an IRS audit. He contacted Merrimack Tax Associates looking for suggestions to reduce that risk.