We Prepare Tax Returns!

We prepare most type of tax returns:


S Corporation.

C Corporation.




Pay Your CPA

Enter $ Below
Other Amount:
Your Email Address:

Tax Audit CPA discusses IRS Red Flags | how do I avoid being audited by the IRS?

IRS tax audit cpa NC

Gary Bode, CPA: don't shoot yourself in the foot. For a free phone consult please call (910) 399-2705.

Every IRS tax audit CPA says there is no guaranteed way to avoid an audit. Why? The IRS conducts random audits just to establish their own internal benchmarks. But here are some common sense issues to help avoid a tax audit.

Use Tax Software

For a simple personal return, use tax software to prepare it. The IRS provides free software online. Software prevents almost all the top ten errors the IRS sees in Form 1040 tax returns.

Be Honest

I think most tax audit CPAs would agree the IRS probably knows when you’re lying, at least 80% of the time. They just don’t have the resources to chase down every small case. But their correspondence Audits are now more common and designed, in my opinion, to catch smaller discrepancies.
“Every IRS tax audit CPA says there are ways to guarantee you’ll be audited.”
– Gary Bode, tax audit CPA

Be Timely

If you need extra time, file an extension. But what if you still need more time after the final deadline? Sometimes it’s better to file by the deadline, doing the best you can, and then amend that return ASAP.

Think Skeptical

I try to look at things from an IRS tax audit perspective. If your company is claiming a tax refund, because of a Ponzi scheme casualty loss, imagine what the IRS wants to see;

  • Proof you had an account with the Ponzi scheme perpetrator.
  • Proof the perpetrator cheated you
  • Proof of the amount you lost.
  • The special Appendix required with Form 4684.
  • A good cover letter explaining the situation clearly.

Be Complete

Be proactive in obtaining all relevant tax information. Here’s an actual IRS tax audit case. A Client had his car re-possessed. The Lender wrote off his loan. That bad debt became taxable income to him for that tax year. The Lender sent a Form 1099-C to the IRS but, probably, not to my client. My Client should have known bad debt was taxable and asked for his copy of Form 1099-C.

Keep Records

Even if it’s a shoebox system, keep documents that can help you prove what’s on your tax return.

Keep Notes

As a CPA I obviously can’t remember every aspect of every case. So I keep notes. Our tax software allows me to make notes on every tax field. I can keep them private or submit them as explanations when I file the return

Know when you need to Punt

There are many tax issues that are difficult without some experience. Get a Pro when you need one. I spend dozens of hours a year staying current with just the issues I specialize in. Sometimes paying a CPA or enrolled agent just makes sense.

Don’t be Nasty

Virtually all IRS employees are professional and understand your frustration. But berating them by phone or in person doesn’t make a lot of sense. Stay professional.

I’m a tax audit CPA with a virtual office to serve you wherever you are. Please read some of the hundreds of posts on this website to gauge my abilities, credentials and experience. (910) 399-2705.

Comments are closed.