{"id":7857,"date":"2026-04-14T12:39:33","date_gmt":"2026-04-14T12:39:33","guid":{"rendered":"https:\/\/arora.law\/newsite\/?page_id=7857"},"modified":"2026-05-11T17:10:25","modified_gmt":"2026-05-11T17:10:25","slug":"tax-audit","status":"publish","type":"page","link":"https:\/\/arora.law\/newsite\/tax-audit\/","title":{"rendered":"Tax Audit"},"content":{"rendered":"\t\t
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International Tax Audit<\/div>
(201) 620-1482<\/a><\/div>Schedule a Consultation<\/a><\/div><\/div><\/div>\t\t\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t
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\n\t\t\t\t\tInternational Tax<\/span>\n\t\t\t\t\n\t\t\t\t\tAudit<\/span>\n\t\t\t\t<\/span>\n\t\t\t\t<\/h3>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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\n\t\t\t\t\t\t\t\t\tDid you or your business receive a letter from the IRS? Please do not ignore any communication from IRS, it is very crucial to report back in a timely manner. If you or your business is going through an audit or anticipating an audit, it is very crucial to seek proper legal tax help. At Arora Law P.C. we understand the importance of Tax Audit. No matter where you are located or where you are in the process seek professional help. Not dealing properly can be very costly. Here are some of the areas we cover, please do not hesitate to contact us:\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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What is Tax Audit? <\/div><\/span>\n\t\t\t\t\t\t\t\n\t\t\t<\/path><\/svg><\/span>\n\t\t\t<\/path><\/svg><\/span>\n\t\t<\/span>\n\n\t\t\t\t\t\t<\/summary>\n\t\t\t\t
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To better or more fully understand about tax audits, one should first understand the meaning of an \u201cAudit\u201d. An Audit is an official review or examination of your accounts or books by an independent body.<\/p>

A tax audit is a type of audit by the IRS which they review and examine a tax return closely to verify the accuracy of income, deductions, and taxes on the return. It is a detailed inspection, especially of any out of ordinary items listed on the tax return. The idea behind a tax audit is to ensure reporting of accurate accounting information (Income, Taxes, Gain, Loss etc.) in adherence to the tax laws.<\/p>

Once selected for an audit, the IRS will request that the taxpayer furnishes additional documentation or information to validate items in question on the return. The IRS can request proof or explanation through mail, office visit or field visit. Generally, there are three types of tax audits:<\/p>

Mail audits<\/b> are the simplest type of audits and do not require any meeting with the auditor. The IRS requests proof to validate the taxpayer\u2019s claim or position taken with respect to an item on the tax return. Submitting the requested proof via mail should conclude the audit.<\/p>

Office audits<\/b> are conducted at the IRS office, which involves some questioning by an audit officer. This is relatively a more in-depth audit, and office audits require that the taxpayer brings specific tax return information to the meeting. A taxpayer has the right to bring a lawyer to represent him.<\/p>

Field audits<\/b> are comprehensive, and the broadest type of examination conducted by an IRS agent. Like the name suggests, these are conducted at the taxpayer\u2019s home, office or accountant\u2019s office. In general, these are conducted when there are many items on the tax return that are questionable.<\/p>

Did you or your business receive a letter from the IRS? Please do not ignore any communication from IRS, it is very crucial to report back in a timely manner. You can reach out to our office for a free evaluation at\u00a0(201) 620-1482<\/a>\u00a0or\u00a0click here<\/a>\u00a0to schedule a free case evaluation today!<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/details>\n\t\t\t\t\t\t

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What are the chances of getting audited? <\/div><\/span>\n\t\t\t\t\t\t\t\n\t\t\t<\/path><\/svg><\/span>\n\t\t\t<\/path><\/svg><\/span>\n\t\t<\/span>\n\n\t\t\t\t\t\t<\/summary>\n\t\t\t\t
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The possibility of the IRS examining your tax returns generally depends on income level and filing type.\u00a0 The more complex your tax returns, the higher the chances of facing an audit. The more basic the tax return, the lower the chance of scrutiny.<\/p>

Generally speaking, most returns are randomly selected for audit. \u00a0That being said, if your tax return has unusual deductions or omissions, IRS may warrant further examination by the tax authority.<\/p>

Your chances of hearing from the IRS escalate when you claim unusual tax breaks, huge losses, or, most importantly, foreign assets.<\/p>

For example, independent contractors receive Form 1099 MISC for their services when they are paid more than $600. A copy of this form is also submitted to the IRS. If the income from 1099 MISC does not match with that of the IRS, it may trigger an audit.<\/p>

To get a clear picture, let\u2019s look at certain statistics released by the IRS for each type of entity.<\/p>

IRS Audit rates by income level for individuals (2018): <\/strong><\/p>
Income level<\/strong><\/td>Percentage audited<\/strong><\/td><\/tr>
$0<\/td>2.04 %<\/td><\/tr>
$1 to $25000<\/td>0.69%<\/td><\/tr>
$75000 \u2013 $100,000<\/td>0.45%<\/td><\/tr>
$100,000- $200,000<\/td>0.45%<\/td><\/tr>
$10,000,000 or more<\/td>6.66%<\/td><\/tr><\/tbody><\/table>

IRS Audit Rates\/Statistics by tax filing type (2018)<\/strong><\/p>
Percentage Audited<\/strong><\/td>\u00a0<\/td><\/tr>
Small Corp<\/td>0.6%<\/td><\/tr>
Large Corp<\/td>8.1%<\/td><\/tr>
S Corp<\/td>0.2%<\/td><\/tr>
Partnership<\/td>0.2%<\/td><\/tr>
Individual<\/td>0.59%<\/td><\/tr>
Estate tax returns<\/td>8.33%<\/td><\/tr>
Employment Tax returns<\/td>0.2%<\/td><\/tr><\/tbody><\/table>

Further, estate returns often have very good returns for the IRS.\u00a0 The IRS audits 100% of estates over $10M, 58% $5M-$10M and 14% under $5M.<\/p>

The odds of being audited have decreased significantly over the last few years. The reasons include:<\/p>