By: Michael March and Matthew Razzano The Internal Revenue Service (“IRS” or the “Service”) aggregates, reviews, and analyzes taxpayer data and determines whether to manually or systematically audit the reported information. When the Service audits multiple taxpayers reported under the same preparer tax identification number (“PTIN”), a tax preparer investigation...

The Internal Revenue Service (IRS) audits a wide range of taxpayers, including individuals, small businesses, large corporations, partnerships, and nonprofit organizations. Individuals may be selected for audit due to discrepancies in reported income, unusually high deductions, or random selection. Businesses—regardless of size or industry—can be audited if their returns contain...