Should I be worried about an upcoming IRS audit?
Former IRS Tax Examiner here, I was not an auditor, but I frequently did send cases to the Examination Branch. The advice given/opinion here is my own, and this is no substitute for professional tax advice. I just like helping taxpayers, and I believe that taxpayers dealing with the IRS deserve straight answers, and deserve to be treated fairly. Based on your question, it appears that the audit is due to information on your Tax Year 2004 return relating to the flood in your area. It is likely that you have received correspondence from the IRS regarding this matter. It would be helpful if you would post the type of notice you received (a code like CP-XX on the top right-hand side of your correspondence), and some text from the correspondence (like “Your Form 1040 for the tax period ending December 31st, 2004 has been selected for examination due to this reason.” But I’ll work with what is here. I can think of four possible reasons why you are being audited: 1. For whatever reason(s), th
