What Is an IRS Audit?

What Is an IRS Audit? So IRS audits have a lot of bad connotations that surround it but on a very basic level an IRS audit is the IRS coming in and checking that your tax return was filed correctly but the IRS is looking for an IRS audit as they're looking for one of two things number one they're looking for any income that wasn't reported or income that wasn't reported correctly and number two any expenses and/or credits that were not being accounted for properly or not taken appropriately the combination of income and expenses contributes to your taxable income and the amount of tax you pay so essentially what the IRS is doing is they're coming in and just verifying that the information is correct now what I tell my clients is that tax returns tell a story, so for example you were sitting you're watching this video and you have a tax return and that tax return contains a treasure trove of information about you it tells whether or not you're married it tells whether or not you have kids it says where you live it says where you earn income from and it says to some limited degree.

What you spend money on let the cover interested in when the IRS comes in an audit you chances are they're auditing you because that's story doesn't match or something doesn't make sense based on what you're telling the government so for example if you make thirty thousand dollars a year and you live in Beverly Hills that may be something that the IRS might want to look at consequently if you make multiple millions of dollars in live a low-income neighborhood that's something. The IRS might want to check if you're a tax attorney and you have a large deduction for international travel there could be a very good reason for that or there could not be a very good reason for that so those are things that the IRS just looks at they look at expenses they look at the way you you're an income they look at the story that your return is time so even though an honor it has a lot of negative connotation essentially that's what it is.

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Sam Brotman, JD, LLM, MBA

Owner and Director of Legal
Brotman Law

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