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Even if you file your taxes accurately and carefully, you might still be concerned about being the subject of an IRS audit. While the prospect can be intimidating, the accountants at Erie & Associates, P.C. want you to know that being audited is not as stressful as most people think. This Texarkana, TX firm has assisted numerous clients navigate even the toughest tax problems and concerns.

Worried About an IRS Audit? This Guide Can Clear Up Confusion

How Often Do They Occur?

Despite the seeming prevalence, audits rarely occur. According to the IRS’s 2016 Data Book, only 0.6% of all returns were examined. Your chances increase with your tax bracket—18.79% of taxpayers who earn more than $10 million a year receive audits. Though they can occur randomly, most are chosen based on some discrepancy or red flag appearing in a tax return.

What Types of Audits Are There?

irs auditThere are three types: mail, office and field. Mail IRS audits are the easiest, and typically involve the IRS requesting additional information on your return. The IRS may also complete an examination at their office or visit your home or business. In most cases, office audits are conducted when the IRS requires information that should not be sent through the mail. In-person visits are typically used to establish whether a deduction is valid. For example, if you claimed a deduction for your home office, the amount will vary depending on the square footage of the room.

When Should I Be Concerned?

If you receive notice via email, text, social media or phone, it may be a scam. If someone is pressuring you to reveal your credit card information under the guise of an IRS official, fill out this online reporting form.

For your best chance at avoiding an IRS audit, ask for help with your tax returns. Erie & Associates, P.C. provides useful financial services, from tax preparation to business accounting.  Schedule a consultation with a Texarkana CPA by calling (903) 792-6651 today. If you’d like more information on the full listing of tax management services, visit the website today.

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