{"id":1829,"date":"2021-02-24T04:04:00","date_gmt":"2021-02-24T10:04:00","guid":{"rendered":"https:\/\/blockadvisors.com\/?p=1829"},"modified":"2025-01-24T13:11:27","modified_gmt":"2025-01-24T19:11:27","slug":"can-get-irs-audited","status":"publish","type":"post","link":"https:\/\/www.blockadvisors.com\/resource-center\/small-business-services\/can-get-irs-audited\/","title":{"rendered":"How many times can the IRS audit your business?"},"content":{"rendered":"\n

Editor\u2019s note:<\/strong> Every person (and business) fears the IRS will come knocking on their door\u2014more than once. But is that fear realistic? How many times the IRS can audit you depends on a few factors. Read this case and get insights on how to avoid getting in double trouble.<\/em><\/p>\n\n\n\n

Consider this scenario: Zach is a small business owner based in Kansas City. He incorporated his business in 2019. In the first few years of operation, he took the advice of an inexperienced tax preparer and his 2018 tax return was audited by the IRS. Since the audit, he has worked with the IRS to reconcile his return and now takes every measure to comply with IRS best practices.<\/p>\n\n\n\n

Yet, Zach continues to question the IRS\u2019 repetitive audit policy. Read on to find out the answer\u2026<\/p>\n\n\n\n

If you get audited once, will you get audited again?<\/h2>\n\n\n\n

Well, Zach won\u2019t have much comfort in that regard. The IRS can audit him year after year. Tax law limits the IRS from subjecting a taxpayer to unnecessary examinations. <\/p>\n\n\n\n

Our own tax experts at The Tax Institute state, \u201cThe IRS can conduct only one inspection of a taxpayer\u2019s books and records for any given year unless the taxpayer requests a second inspection or the IRS notifies the taxpayer in writing that an additional inspection is necessary.\u201d<\/p>\n\n\n\n

\u2026 especially when a return has\u00a0multiple red flags, which are mentioned as you read on.<\/p>\n\n\n\n

How many years can you get audited for taxes?<\/h2>\n\n\n\n

Wondering what the answer is to the question, \u201chow many years can you get audited for taxes?\u201d There is no limit for the number of business audits in your lifetime. It depends on your situation.<\/p>\n\n\n\n

What happens if you\u2019re audited by the IRS several years in a row?<\/h2>\n\n\n\n

Can Zach be audited by the IRS for his 2018 return after being audited for the same issue (not his Schedule C business) with minimal changes on his 2016 and 2017 returns?<\/p>\n\n\n

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As soon as Zach receives the IRS notice explaining that he is being audited again, there are a number of things he should do. (We\u2019ve listed those below.) But, if you\u2019re in Zach\u2019s shoes, you should set your mind at ease and contact us. Don’t want to tackle audits by yourself? At Block Advisors, our small business tax<\/a> pros understand the stress of having your business audited, and, more importantly, we know how to help, so you don\u2019t have to take the following steps alone. For this year’s return, if you receive an IRS notice, our team at Block Advisors can review, research, and respond on behalf of your small business by adding Business Tax Audit Support<\/a> to your return for $75.<\/p>\n\n\n\n

Request that the IRS discontinue the audit (using the contact information on the notice received).<\/strong><\/h4>\n\n\n\n

He should reference the IRS\u2019 repetitive audit policy in his request. When he makes the request, he should be aware that the IRS is going to ask for certain information to help determine whether the repetitive audit policy applies. The IRS will generally request:<\/p>\n\n\n\n