Most taxpayers think of an IRS audit as a contained event: One tax year One return One defined issue In practice, that’s rarely how audits unfold. Under  IRM 4.10 , examinations are designed to be  issue-focused , but they are also designed to follow facts wherever they reasonably lead. Once an issue is identified and developed, the IRS is obligated to apply the law  consistently , even when that means expanding the audit. Understanding  how  and  why  audits expand—both  within the same year...

When taxpayers talk about “red flags,” the conversation usually drifts into myths fast. You’ll hear things like: “Big refunds get you audited.” “Too many deductions trigger the IRS.” “If you’re small enough, they won’t bother.” “This write-off is a red flag.” That’s not how audits actually work. When I audited tax returns, we didn’t hunt for vibes, lifestyle clues, or moral judgments. We followed  structured examination procedures , primarily laid out in  IRM 4.10 , which governs how returns...

Few tax topics cause more confusion—and more bad advice—than business expenses. You’ve probably heard things like: “If you have an LLC, you can write everything off.” “As long as it helps your business somehow, it counts.” “Everyone deducts this.” “Just call it marketing.” None of those are IRS rules. From the IRS’s perspective, business expenses aren’t about creativity or intent. They’re about  definition, consistency, and documentation . Most problems don’t come from people trying to cheat...