The agency itself recently stated IRS audits are fewer in number but increasingly aggressive based upon the "decrease in resources available for examinations." AI has become the agency's primary tool to identify tax return anomalies, errors, and omissions, and target appropriate taxpayers for closer examination and/or audit. Key Takeaways From...
How to Deal with the IRS on Back Taxes
Are you concerned about how to deal with the IRS on back taxes? Have you received a communication from the IRS, such as a CP14 "Notice of Tax Due and Demand for Payment"? Take a breath, you have more options and time than your accelerating heartbeat would leave you to...
Why the IRS Requests Information During an Audit — and Why the “Why” Matters More Than the Request Itself
It is important for U.S. taxpayers to understand why the IRS requests information during an audit. If you have been contacted by the IRS or any state tax agency for additional information or an audit the "why" matters more than the request itself. Key Takeaways about Why the IRS Requests...
The IRS will Discover Your Offshore Financial and Digital Activities
As long as there have been taxes levied in the world, there have been those who try to work the system or evade taxes altogether. Unfortunately for many, the world has become a much smaller place for those who wish to underreport income or shelter their income and assets. The...
Is the Burden of Proof on the IRS During an Audit?
Is the burden of proof on the IRS during an Audit? It might shock you to learn that the burden of proof in an IRS audit, and in most dealings with the IRS, lies with the U.S. taxpayer, not the IRS. Key Takeaways on Is the Burden of Proof on...
Managing an IRS Correspondence Audit
One of the new realities for U.S. taxpayers includes the responsibility for managing an IRS correspondence audit. What should you do if you are contacted regarding any form of IRS audit? Did you know the present majority of IRS audits are known as "correspondence audits?" What is a correspondence audit,...
The Risk of California FTB Audits is Increasing
Did you know that the risk of California FTB audits is increasing when compared to the trend of IRS audits in 2025? The California Franchise Tax Board, or FTB, has recently invested in advanced data processing systems and AI applications. This, combined with streamlined information sharing with the IRS, Employment...
Substantial Recent Reduction in the IRS Workforce
What does the substantial recent reduction in the IRS mean for U.S. taxpayers and expatriates? How will staff reductions affect the agency’s ability to audit and collect taxes owed by U.S. taxpayers around the world? What impact will the newly confirmed IRS Commissioner have on the agency’s future? According to...
The Statute of Limitations in an IRS Audit
Why is the statute of limitations such an essential factor in an IRS audit? Should you approve a request from the auditor for a waiver of the statute of limitations in an IRS audit? This is often a complex question, and if you are not represented by an experienced tax...