In recent months, the IRS has repeatedly indicated that it intends to focus audit activity on affluent taxpayers with more than $400,000 in annual income, large partnerships and big corporations. Taxpayers in these groups should, therefore, be prepared for extra scrutiny. You may want to review tax filings from the past three years to ensure you can produce proper documentation for major transactions. If you discover any errors, it’s better to correct and report them now, rather than wait for the IRS to find them. Some taxpayers should also think about whether they need advisors to help manage a potential audit. Contact us for advice. © 2023