Tax Audits: What Triggers Them and How to Respond Strategically
Few events unsettle taxpayers faster than a letter bearing the IRS seal. An audit notice means the Service questions your numbers and may propose changes that balloon your liability. The Law Office of Max Benkel can guide you through every phase of review. Connect with a top-tier tax attorney in Atlanta today before deadlines limit your options.
What Triggers Tax Audits
The IRS relies on data-matching algorithms and issue-focused campaigns to decide which returns deserve extra scrutiny. In fiscal year 2024 the agency closed 505,514 audits, recommending more than $29 billion in additional tax. A new enforcement surge is also targeting 125,000 high-income non-filers whose financial activity tops $100 billion. Returns are most likely to land in that queue when they show:
- Missing W-2, 1099, or crypto exchange forms
- Schedule C losses that offset most wage income
- Charitable deductions far above IRS statistical averages
- Rounded figures that signal estimates, not records
- Large refundable credits without matching documentation
High earners in particular face elevated audit coverage—11 percent for those reporting over $10 million in total positive income. Georgia residents must also watch for state follow-ups once federal exam adjustments flow to the Department of Revenue, making early defense by a Georgia tax attorney doubly important.
How to Respond Strategically
An audit begins the moment the CP or 566 series letter arrives; phone calls are scams. Smart action within the first 30 days can save months of stress and thousands in penalties:
- Verify the scope. Confirm which tax year and which line items are in dispute.
- Build your file. Collect bank statements, receipts, mileage logs, and third-party forms before memories fade.
- Retain counsel. An experienced Atlanta tax attorney can request more time, restrict over-broad document demands, and channel discussions toward the facts.
- Control the statute. Extend deadlines only when it benefits you—never reflexively.
- Negotiate settlement paths. Your tax attorney may secure a no-change letter, partial concession, or closing agreement; if a balance remains, an attorney may also pursue installment plans, offers in compromise, or “currently not collectible” status to shield wages and property.
Because unresolved audits roll seamlessly into liens and levies, proactive representation by an attorney preserves cash flow while protecting business licenses and personal credit.
Atlanta IRS Audit Defense—Act Now
Tax disputes rarely disappear on their own. The Law Office of Max Benkel converts audit anxiety into a structured legal matter handled by an Atlanta-based team with decades inside the Service—contact us today to place proven advocacy between you and escalating IRS demands.
