“Audited by the IRS? Here’s What to Do — and What Not to Do”

Financial Horizons: Insights for Building Wealth and Securing Your Legacy

By Dr. Jose G. Cardenas, Chief Tax Strategist at The C & R Group, LLC.

The word “audit” has the power to make even the most organized taxpayers break into a cold sweat. As the meme suggests, there are generally four types of reactions when that dreaded IRS notice arrives:

• A. Call a tax professional
• B. Try to handle it myself
• C. Panic
• D. Reach out to the IRS for more information

The only correct answer if you value your peace of mind and financial protection? A: Call a tax professional. Here’s why — and what else you need to know.

What Triggers an IRS Audit?

IRS audits can be triggered by:

• Discrepancies between W-2s/1099s and your return
• Large deductions compared to your income
• Self-employment income without sufficient documentation
• Home office deductions or charitable contributions that seem unusually high

But here’s the key insight: Getting audited doesn’t always mean you’ve done something wrong. It simply means the IRS wants clarification — and how you respond can make or break the outcome.

Why “Trying to Handle It Myself” is Risky

Many people choose Option B thinking it’ll save money. In reality, it can cost you far more in:

• Back taxes
• Interest and penalties
• Stress and wasted time

The tax code is over 70,000 pages long. One wrong explanation or missed document can quickly turn a minor issue into a major liability.

What a Tax Strategist Does in an Audit

Calling a tax professional (like our firm) gives you:
✅ Representation before the IRS
✅ Strategy on how to respond (and when not to)
✅ Access to your past returns, receipts, and legal defenses
✅ Peace of mind that your rights are being protected

We assess your situation from both a compliance and defense perspective. Often, we can reduce or eliminate penalties altogether.

How to Prepare Now (Before an Audit Ever Happens)

Here’s how proactive clients set themselves up for audit-proof financial success:

• Maintain clean bookkeeping through a dedicated platform or professional
• Document every deduction, especially for meals, mileage, and home office
• Separate business and personal expenses
• Work with a tax strategist year-round — not just in April

Don’t Wait Until You’re Audited. Get a Tax Defense Plan in Place.

If the IRS comes knocking, you want a team ready to defend you — not a Google search and a panic attack.

👉 Book a Tax Assessment with us now to make sure you're audit-ready and legally protected.

About the Author

Dr. Jose G. Cardenas is a retired U.S. Army Finance Officer and the Chief Tax Strategist at The C & R Group, LLC. With a Doctorate in Business Administration and over 20 years of experience in financial strategy, tax planning, and life insurance, Dr. Cardenas helps individuals and business owners protect their wealth and build a legacy. Learn more at www.thecrgroupllc.com.

📌 Disclosure: This article is for educational and informational purposes only and is not intended to serve as personalized legal or investment advice. Dr. Jose G. Cardenas, DBA, provides tax advisory services through The C & R Group, LLC. Insurance strategies, including Indexed Universal Life (IUL) and annuity products, may be offered through his role as a licensed financial professional affiliated with Experior Financial Group.

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