Michael Steffany, senior associate in the private client and tax team, recently spoke with USA Today this tax season to provide his input on the factors that could set taxpayers up for an IRS audit. Michael told USA Today “the IRS concentrates its efforts on those items most likely to result in a large amount of additional tax due.”
Additionally, he noted “we continue to see high net worth taxpayers, as well as taxpayers with non-US income and foreign entities be a particular point of concentration.” Michael also indicated that high earners are likely to see an increase in audit activity as the IRS prepares to receive billions in funding from the Inflation Reduction Act. If you happen to find yourself at the center of an audit, Michael says “it is imperative that you cooperate and develop a good relationship with the IRS auditor.”
He notes it is important to attempt to fully understand and answer the organization’s questions thoroughly. “Far too often taxpayers take an aggressive posture which leads to audits spiraling far afield from where they began,” Michael said, and maintaining a cooperative stance may be the best course of action when working with the IRS.
You can read Michael’s thoughts in USA Today at the following links to the full article text below:
IRS audit: What triggers it and what are red flags that increase the chance of being audited
How long does an IRS audit take? What to know about IRS audit triggers, letters and more
For further information, please contact:
Michael Steffany, Withersworldwide
michael.steffany@withersworldwide.com
