Understanding Your Audit Risk in the High Desert
Residents of Apple Valley, Victorville, Hesperia, and Barstow often wonder about their likelihood of facing a tax audit. While the IRS audits only a small percentage of returns annually, certain factors can increase your chances. Knowing these risk factors can help you stay compliant and avoid unnecessary scrutiny.
Factors Increasing Audit Likelihood
The IRS uses various systems, including the Discriminant Information Function (DIF) score, to select returns for audits. Common triggers include high income, substantial deductions, and discrepancies between reported income and information statements like W-2s or 1099s. Learn more about IRS audit types and processes.
Local Considerations
In the High Desert, specific local economic activities can also play a role. For example, if you claim significant deductions for home office expenses in areas like Apple Valley or Barstow, ensure meticulous record-keeping. Check our tax preparation page for tips on proper documentation.
Reducing Your Audit Risk
Ensuring accurate and honest reporting is key. Double-check your returns for mathematical errors and ensure all income is reported. Consulting with a tax professional familiar with local regulations can also be beneficial. Consider our tax resolution services for expert advice.
What to Do If Audited
Receiving an audit notice can be stressful, but understanding the process can ease concerns. The IRS will specify which items they are examining. It's crucial to respond promptly and provide the requested information. Our audit defense team is ready to assist you.
For personalized assistance, contact us at (760) 249-7680 to schedule a consultation.
FAQs About IRS Audits
- What is an IRS audit? An IRS audit is a review of an individual's or organization's accounts and financial information to ensure information is reported correctly according to the tax laws and to verify the reported amount of tax is correct.
- How will I know if I'm being audited? The IRS will notify you by mail if you are selected for an audit. They will never initiate an audit via phone or email.
- How far back can the IRS audit my returns? Generally, the IRS can audit returns filed within the last three years. However, if substantial errors are found, they may audit up to six years back.
- What should I do if I receive an audit notice? Contact a tax professional immediately to discuss your options and prepare your response. Our team can help guide you through the process.
- Can I appeal an audit finding? Yes, if you disagree with the audit findings, you have the right to appeal. Consult our contact page for assistance with your appeal.
