Quick Answer:
An IRS audit is a review of your tax return to verify accuracy. In Huntersville, NC, the most common triggers include mismatched income reports, excessive deductions, unfiled returns, or random selection. If you receive an audit notice, act quickly: gather all documentation, avoid direct communication with the IRS without a representative, and work with a licensed professional like Polaris Tax & Accounting to protect your finances and resolve the issue.

Understanding IRS Audits

An IRS audit is not always a sign that you’ve done something wrong, but it does mean the IRS has questions about your tax return. In Huntersville and across the country, these reviews can range from simple correspondence audits (handled by mail) to complex in-person examinations.

At Polaris Tax & Accounting, we regularly represent clients through all stages of the audit process. Our goal is to minimize your financial risk and ensure your rights are protected.

Common IRS Audit Triggers in Huntersville, NC

While some audits are random, many are triggered by specific red flags in your tax return. Here are the most common:

  1. Mismatched Income Reports

    • If the income reported on your return doesn’t match what employers, clients, or financial institutions report to the IRS (via W-2s, 1099s, etc.), you may receive a notice.

  2. Unusually High Deductions

    • Large deductions, especially in proportion to your income, can draw IRS attention. This is common for self-employed taxpayers.

  3. Unfiled Tax Returns

  4. Cash-Intensive Businesses

    • Restaurants, salons, and similar businesses that deal heavily in cash are more likely to be audited.

  5. Foreign Accounts or Income

    • The IRS pays close attention to unreported foreign income or overseas bank accounts.

  6. Self-Employment

    • Self-employed taxpayers often face more scrutiny because there is more opportunity for error or misreporting.

Types of IRS Audits

  1. Correspondence Audit

    • Handled by mail; the IRS requests specific documents to verify parts of your return.

  2. Office Audit

    • You’re asked to bring documentation to an IRS office for review.

  3. Field Audit

    • An IRS agent visits your home or business; these are the most serious and comprehensive.

What to Do If You Receive an Audit Notice

Step 1: Don’t Ignore It
Ignoring an audit notice can escalate the situation quickly. The IRS will move forward with its findings whether you participate or not.

Step 2: Contact a Licensed Representative
Polaris Tax & Accounting’s Enrolled Agents can represent you directly before the IRS, preventing costly mistakes in how you respond.

Step 3: Gather Your Documentation
Collect all records related to the tax year in question — receipts, bank statements, mileage logs, invoices, and any supporting schedules.

Step 4: Avoid Speaking Directly to the IRS Without Representation
Anything you say can be used against you in determining liability. Let your tax professional handle communications.

How Polaris Tax & Accounting Helps With IRS Audits

We take a proactive defense approach to audits:

  • Full Case Review – We analyze your IRS notice, transcripts, and returns.

  • Document Organization – We prepare the audit packet so nothing is missing.

  • Direct Representation – We speak to the IRS on your behalf so you don’t have to.

  • Negotiation of Outcomes – If the IRS determines you owe additional taxes, we help negotiate payment plans or reduce penalties.

Why Acting Fast Matters

Every IRS audit has deadlines. Missing them can:

How to Reduce Your Chances of a Future Audit

While you can’t avoid all risk, these strategies help:

  • Accurate Recordkeeping – Keep receipts and documentation for at least 3 years.

  • Report All Income – Even small amounts or side gigs.

  • Work With a Licensed Professional Year-Round – Not just at tax time.

  • Avoid “Aggressive” Deductions Without Proof – Every deduction must have documentation.

The Cost of Going Through an Audit Alone

Without professional representation, taxpayers often:

  • Pay more than they legally owe

  • Miss opportunities for penalty abatement

  • Fail to present the strongest case possible

At Polaris Tax & Accounting, we ensure the IRS follows the law and that every tax benefit you’re entitled to is claimed.

Get Professional IRS Audit Help in Huntersville, NC

If you’ve received an audit notice, the clock is already ticking. Don’t wait until it’s too late — Polaris Tax & Accounting is here to:

  • Protect your finances

  • Handle all IRS communications

  • Provide peace of mind during a stressful process

Schedule a confidential consultation today to get immediate help with your IRS audit and protect your financial future.

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