Why should a taxpayer use the services of a forensic accountant when being audited or under criminal investigation? Tracy Coenen talks about the expertise a forensic accountant can bring to the case, specifically in evaluating the methods used by the IRS for determining income.
Scared of being audited by the Internal Revenue Service or your state taxing authority? That’s what they want! They hope the fear of an audit will keep you honest. And although the average taxpayer has a very low chance of getting audited, the potential is always there.
So people are often wondering about some of the most common audit red flags. Well, the IRS is smart. They know that if they told everyone what the red flags are, taxpayers would all avoid those items and cheat elsewhere.
Fortunately, your trusty tax preparers have noticed some of the more common audit issues: