Few things cause more anxiety than a letter from the IRS saying you’re being audited. But with the right preparation—and expert representation—you can reduce stress, protect your rights, and often walk away with little to no changes to your return.

If you live in the Charlotte area and have been notified of an IRS audit, Polaris Tax & Accounting is here to help you understand the process and take action confidently.

What Is an IRS Audit?

An IRS audit is a formal review of your tax return to verify that your income, deductions, credits, and payments were reported accurately. There are three main types:

  1. Correspondence Audit – Handled by mail. Most common and least invasive.

  2. Office Audit – You’re asked to bring documentation to an IRS office.

  3. Field Audit – An IRS agent visits your home or business. Most serious.

What Triggers an IRS Audit?

Some of the most common triggers for Charlotte taxpayers include:

  • High income ($200K+ returns are audited at a higher rate)

  • Large charitable contributions without documentation

  • Unreported 1099 or W-2 income

  • Excessive business expenses, especially for sole proprietors

  • Home office deductions that don’t follow the rules

  • Schedule C losses year after year

  • Crypto transactions not reported properly

  • Rental losses claimed without qualifying as a real estate professional

  • Cash-intensive businesses like salons, bars, or food trucks

Are Charlotte Businesses at Higher Risk?

Yes. The IRS often targets small businesses—especially those operating as Schedule C sole proprietors—because of the potential for unreported cash income and exaggerated expenses.

If your business is in construction, real estate, consulting, or hospitality, and you’re filing as a sole prop or single-member LLC, you’re statistically more likely to be audited.

How to Prepare for an IRS Audit

Here’s what you need to do if you’ve received an audit letter—or want to get ahead of one:

1. Gather Your Documentation

Pull your bank records, receipts, invoices, and anything that substantiates deductions or income.

2. Don’t Talk to the IRS Yourself

It’s easy to say the wrong thing. As an Enrolled Agent, Polaris Tax & Accounting can represent you directly and shield you from unnecessary risk.

3. Review the Year(s) in Question

We’ll help you examine the return line by line, identify red flags, and correct any errors proactively if needed.

4. Prepare a Clean Paper Trail

The IRS prefers organized documentation. If your records are messy, we can help recreate what’s needed.

5. Be Proactive, Not Defensive

Audits don’t have to be confrontational. If you’re honest and prepared, many audits end in “no change.”

What Happens After the Audit?

The IRS will either:

  • Accept your return as filed

  • Propose changes (which you can accept or appeal)

  • Issue penalties and interest for underpayment

You always have the right to appeal or request reconsideration—with proper guidance.

Why Choose Polaris for Audit Representation?

  • We’re federally licensed Enrolled Agents with unlimited rights to represent you

  • We’ve handled IRS audits for individuals, businesses, and landlords

  • We know how to speak the IRS’s language

  • We serve clients across Charlotte and all of North Carolina

Your Next Step

Don’t wait until you’re overwhelmed. Whether you’re facing a current audit or want to prepare ahead of time, Polaris Tax & Accounting can help you feel in control.

📞 Call 704-947-3178
🔗 Visit our Charlotte IRS Tax Help Page »

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