From the Tax Law Offices of David W. Klasing [Video]

IRVINE, Calif., Aug. 14, 2024 /PRNewswire/ — The IRS might open an audit when a tax return does not contain enough information to explain certain large, unusual, or questionable (LUQ) items.

The IRS pays close attention to large, unusual, and questionable items reported on tax returns. Typically, these are any deductions or expenses that are considerable or unconventional for your specific situation. If the IRS flags something in a taxpayer’s return as a LUQ item, the agency might proceed with an audit of the taxpayer’s return. When the IRS notifies you of an audit, it will also tell you what information is missing and what you need to provide in order to resolve the matter. Audits often involve interviews as well, which we can prepare you for by reviewing the issue. Taxpayers should not ignore audits regarding LUQ items, as doing so could …