Duban Accountancy, LLP, is an accounting firm based in Los Angeles, California. The firm is comprised of a team of experienced certified public accountants.

1. IRS Auditors Look forIRS Auditors Look for
Red FlagsRed Flags
By Duban AccountancyBy Duban Accountancy

2. IRS Auditors Look for Red FlagsIRS Auditors Look for Red Flags
Duban Accountancy, LLP, is anDuban Accountancy, LLP, is an
accounting firm based in Los Angeles,accounting firm based in Los Angeles,
California. The firm is comprised of a teamCalifornia. The firm is comprised of a team
of experiencedof experienced certified public accountantscertified public accountants
. .

3. IRS Auditors Look for Red FlagsIRS Auditors Look for Red Flags
The IRS now conducts fewer audits than itThe IRS now conducts fewer audits than it
did twenty years ago. This is because thedid twenty years ago. This is because the
agency is using a new strategy thatagency is using a new strategy that
targets suspicious behaviors. targets suspicious behaviors.

4. IRS Auditors Look for Red FlagsIRS Auditors Look for Red Flags
Auditors now look for red flags beforeAuditors now look for red flags before
auditing businesses. One thing that theauditing businesses. One thing that the
agency will look for is anything that isagency will look for is anything that is
above or below average. For example, if aabove or below average. For example, if a
company reports expenses as being 25company reports expenses as being 25
percent of the revenue when the norm forpercent of the revenue when the norm for
the industry is only five percent, thisthe industry is only five percent, this
probably will result in an audit. probably will result in an audit.

5. IRS Auditors Look for Red FlagsIRS Auditors Look for Red Flags
Additionally, the IRS now completesAdditionally, the IRS now completes
thorough studies to determine whichthorough studies to determine which
industries should be audited mostindustries should be audited most
frequently. At present, commonly auditedfrequently. At present, commonly audited
businesses include air charters, carbusinesses include air charters, car
washes, entertainment firms, grain farms,washes, entertainment firms, grain farms,
independent used car dealerships, andindependent used car dealerships, and
companies in the wine industry. companies in the wine industry.

6. IRS Auditors Look for Red FlagsIRS Auditors Look for Red Flags
To ensure that you pass or avoid an IRSTo ensure that you pass or avoid an IRS
audit, work with an accountant to get youraudit, work with an accountant to get your
finances in order. finances in order.

7. IRS Auditors Look for Red FlagsIRS Auditors Look for Red Flags
To ensure that you pass or avoid an IRSTo ensure that you pass or avoid an IRS
audit, work with an accountant to get youraudit, work with an accountant to get your
finances in order. finances in order.