What to Expect During a Tax Audit – And How to Prepare

The idea of a tax audit can make even the most organized small business owner nervous. But the truth is, being selected for an audit doesn’t always mean something went wrong. Sometimes, it’s simply a matter of random selection or a flagged item in your tax return. Knowing what to expect and how to prepare can make the process far less stressful—and possibly even favorable to your business.

At JCB Financial Services, we help clients confidently face audits with proactive strategies, expert representation, and solid documentation.

📌 Why Tax Audits Happen

The IRS may initiate a tax audit for various reasons:

• Unusual deductions
• Mismatched income reports (W-2s, 1099s)
• Excessive business expense deductions
• Home office claims
• Random selection through automated screening

Understanding the trigger can help you avoid similar flags in the future.

🔍 Types of Tax Audits

There are three main types:

1. Correspondence Audit – The IRS requests additional information by mail.
2. Office Audit – You’re asked to visit a local IRS office with specific documentation.
3. Field Audit – An IRS agent visits your business or home.

Each type requires a different level of audit preparation, but all benefit from organized records and professional representation.

📂 How to Prepare for a Tax Audit

Proper preparation is the key to a smooth experience:

• Organize Your Records: Gather receipts, bank statements, ledgers, and all relevant financial documents.
• Understand Your Return: Know what you claimed and why. Be ready to explain deductions and income sources.
• Get a CPA on Your Side: Having a licensed tax professional from JCBFS to guide you can make a significant difference in the outcome.
• Stay Calm and Professional: Approach the audit with transparency. Being honest and respectful helps the process move efficiently.

✅ Proactive Planning Reduces Audit Risk

The best way to handle an audit is to be prepared before it ever happens. With our year-round accounting and tax services, JCB Financial Services helps you maintain IRS-compliant records, make smart deductions, and file accurate returns. Whether you're a self-employed freelancer, a startup, or a growing small business, we’re here to keep you ready.

📞 If you’re facing an audit—or want to make sure you're prepared—reach out to us today.
Just fill in the form below and a JCBFS professional will be in touch to review your situation and help protect what matters most.

🔁 And if this article helped you, please share it with friends, family, or business partners who could benefit from being audit-ready too!