In most audits, the IRS will investigate whether you reported all your income on the return and if you are entitled to your deductions. The IRS will often seek to review your bank statements or lifestyle habits for signs of unreported income. It is important to remember that IRS auditors, who are employed on the civil side, are specifically trained to spot red flags for potential fraud and can refer taxpayers to the Criminal Investigation Division.
We take great care to identify sensitive areas for the audit. Some audits require very delicate handling, balancing straight answers to IRS inquiries with strong legal defenses. It is important to recognize and diffuse an audit issue that could result in the IRS expanding a one year investigation into multiple years.