The Peck Group, LC
  • Comprehensive Tax Law Representation Since 1995

    We handle every aspect of tax law: preparing tax returns, representing clients during audits, resolving IRS and state tax controversies, and creating tax planning strategies for the future.

  • Problems With The IRS Or State Tax

    Our attorneys are committed to providing efficient and effective tax solutions for individuals and businesses in Georgia and nationwide.

  • Planning For The Future

    Our lawyers help individuals and businesses with all aspects of estate and tax planning. We help our clients use proactive strategies to minimize tax implications in the future

  • Changing The Balance Of Power

    Does it feel like the government has all the power? Taxpayers have rights, too. We use our knowledge of tax law to shift the balance of power and ensure that your rights are protected.

  • Tax Solutions … And Peace Of Mind

How does the IRS choose who to audit?

Each year during tax season, we receive questions from many Georgia taxpayers about IRS audits. In particular, individuals and small business owners want to know what they can do to minimize their risk of being audited. While there is no way to completely avoid an audit, being accurate when completing your tax filings should help. Accuracy will also work in your favor if the IRS selects your tax return to audit.

Following are the primary methods the IRS uses for audit selection:

  1. Random selection: Your return could be randomly selected based on a statistical formula.  
  2. Computer screening: Other formulas compare your tax return to others in similar situations and identify major variances from the average.  
  3. Document matching: Your return may be selected if a form such as a W-2 or 1099 does not match the numbers reported on your return.  
  4. Related examinations: If you are doing business with an individual or organization that has been selected for auditing, your return may also be audited.

Generally, the IRS is looking for people who are cutting corners or not being honest. By staying organized throughout the year, keeping proper documents to substantiate your deductions and working with the same tax professional annually, you will be fully prepared in the event of an audit.

Keep These Red Flags In Mind

While no one knows exactly what numbers will trigger an IRS audit, tax professionals widely believe that the following factors may play a role:

  • Math errors and using round numbers
  • Missing 1099 forms
  • Omitting additional income, including cash earnings
  • Claiming a high amount of charitable donations (relative to income)
  • Excessive Schedule C losses (self-employed business expenses)
  • Claiming a home office deduction

Forming a long-standing relationship with a skilled tax attorney will not only help you minimize your taxes, it can also ensure that your assets are protected and provide you with peace of mind if you are selected for an audit.

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The Peck Group, LC
5855 Sandy Springs Circle N.E., Suite 190
Atlanta, GA 30328

Phone: 770-884-6914
Fax: 770-933-2369
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