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Congress has increased the budget of the IRS for the first time in over a decade. With these funds, the IRS plans to modernize its computer systems and hire additional agents—27,000 new agents, to be precise. Enforcement of the tax code has been more relaxed for the better part of the last decade, but this is expected to change in the coming years.

Facing an IRS audit can indeed be daunting. That's precisely why we're launching a newsletter this spring. Our goal with this newsletter is to help you understand IRS audit letters and navigate the audit process smoothly. Learn about the different types of audits—correspondence, office, and field audits—and discover how to respond to them effectively. We're here to offer expert advice so you can manage your tax affairs with confidence.

We'll uncover common triggers for audits, such as discrepancies in reported income and excessive deductions, and guide you on how to prepare your response by gathering the necessary documentation and organizing it efficiently. Additionally, we'll emphasize the importance of verifying the authenticity of an audit notice to avoid falling victim to scams.

Responding appropriately involves addressing each issue with clear explanations and supporting documentation. If you find the process overwhelming, consider hiring an Enrolled Agent for professional guidance. Enrolled Agents can provide expert advice at a fraction of the cost of a tax attorney. Should the audit result unfavorably, it's crucial to know your rights to appeal.

To minimize the risk of future audits, it's important to ensure that your tax returns are accurate, maintain detailed records, report all income, and seek professional advice when needed. By staying informed and prepared, you can handle IRS audits effectively and maintain peace of mind regarding your tax affairs.