New report delves into IRS and audit trends: 3 things to know

One of the leading resources for public accountants, Accounting Today, recently released a report analyzing some of the top trends when it comes to tax audits. According to the report, the Internal Revenue Service (IRS) conducted 991,168 tax audits in 2018.

Three of the more important takeaways from the report include:

  • The IRS will likely scrutinize any EITC. Taxpayer advocates have scrutinized the government for being too harsh on taxpayers who claim an Earned Income Tax Credit (EITC). As a result, anyone claiming an EITC on their tax returns is wise to keep paperwork to support the claim.
  • Penalties are prevalent. According to the report, the IRS assessed 58,266 taxpayers with an accuracy penalty in 2005. In 2018 that number jumped to 606,121. This shows the agency follows through when it sends notification of an audit. If errors are found, the taxpayer will face penalties.
  • Field audits are expensive. It is wise to seek legal counsel if your business is the subject of a field audit. The IRS conducted almost 250,000 field audits last year and the average tax bill was a reported $85,400. An attorney can help represent your interests during the audit and advocate for your rights, potentially lowering or even defeating the IRS' claims for an additional tax bill.

Although field audits should signal the need for an attorney, any taxpayer with significant assets should take a notification of an audit seriously. Depending on the details of the allegations, the government could claim criminal wrongdoing. Defend your interests by seeking legal counsel experienced in complex tax matters.

No Comments

Leave a comment
Comment Information
Email Our Team

Contact Us to Get Started Today

Located in the Washington, D.C area, we serve clients in the District of Columbia, Maryland and Northern Virginia, as well as across the country and overseas. For a free initial consultation, call 202-381-1261 or complete our brief online form.

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

Six Convenient Office Locations in and around the DC Metropolitan Area

Washington, D.C.
1050 Connecticut Ave NW #500
Washington, D.C. 20036

Phone: 202-618-1873
Fax: 888-235-8405
Washington Law Office Map

Columbia Office
10440 Little Patuxent Parkway, Suite 300
Columbia, MD 21044

Phone: 202-618-1873
Phone: 410-497-5947
Fax: 888-235-8405
Columbia Law Office Map

Annapolis Office
839 Bestgate Road
Suite 400
Annapolis, MD 21401

Phone: 202-618-1873
Phone: 410-497-5947
Fax: 888-235-8405
Annapolis Law Office Map

Fairfax Office
8280 Willow Oaks Corporate Drive
Suite 600
Fairfax, VA 22031

Phone: 202-618-1873
Phone: 703-988-4817
Fax: 888-235-8405
Fairfax Law Office Map

Rockville Office
199 E. Montgomery Avenue
Suite 100
Rockville, MD 20850

Phone: 202-618-1873
Phone: 240-599-5009
Fax: 888-235-8405
Rockville Law Office Map

Baltimore Office
400 East Pratt Street
8th Floor
Baltimore, MD 21202

Phone: 202-618-1873
Phone: 443-743-3381
Fax: 888-235-8405
Baltimore Law Office Map