An IRS audit can be stressful, but understanding the process and having the right support can make a big difference. H&R Block, a leading tax preparation service, offers resources and expertise to help taxpayers navigate audits and achieve the best possible outcome.

What is a Tax Audit?

A tax audit is a review of your financial information by the IRS to ensure that your tax return is accurate. The IRS may select a return for audit for various reasons, including:

• Random Selection: The IRS randomly selects a small percentage of returns each year for audit.
• Discrepancies: If your return contains errors or inconsistencies, it may trigger an audit.
• High Income: Taxpayers with higher incomes are more likely to be audited.
• Specific Deductions or Credits: Claiming certain deductions or credits, such as the home office deduction or earned income tax credit, may increase your chances of an audit.

Types of Audits

There are three main types of audits:

• Correspondence Audit: This is the most common type of audit and is conducted through mail. The IRS will request additional documentation to verify specific items on your return.
• Office Audit: This type of audit takes place at an IRS office. You'll need to bring documentation and answer questions in person.
• Field Audit: This is the most comprehensive type of audit and is conducted at your home or business. IRS agents will examine your financial records and interview you.

How H&R Block Can Help

H&R Block offers a range of services to assist taxpayers facing an audit:

• Audit Support: If you used H&R Block to prepare your return, their tax professionals can provide guidance and support throughout the audit process. They can help you gather documentation, communicate with the IRS, and represent you at an audit if necessary.
• Worry-Free Audit Support: H&R Block offers this add-on service that provides comprehensive audit assistance, including representation by an enrolled agent at an in-person audit.
• Tax Audit Help: Even if you didn't use H&R Block for tax preparation, their tax professionals can still assist with audit support and representation.
• Tax Resolution Services: H&R Block offers tax resolution services for various tax issues, including audits, penalties, and collections.
• H&R Block Coupons: While not directly related to audits, keep an eye out for H&R Block coupons, which can help you save money on tax preparation services.

Tips for Handling a Tax Audit

• Don't Panic: An audit doesn't automatically mean you've done something wrong.
• Gather Documentation: Collect all relevant records, such as receipts, bank statements, and invoices.
• Be Organized: Prepare a clear and concise explanation for any questioned items.
• Be Honest: Answer all questions truthfully and completely.
• Seek Professional Help: Consider consulting a tax professional for guidance and representation.

Key Takeaway

While a tax audit can be daunting, H&R Block offers valuable resources and expertise to help taxpayers understand the process and achieve a positive resolution. Their tax professionals can provide support, guidance, and representation to help you navigate the audit process and protect your rights.