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Behind On Your Books,
Business Owners?

Let Me Rescue Your Financials Today!

Behind On Your Books,
Business Owners?

Let Me Rescue Your
Financials Today!

What Causes the IRS to Audit Your Business?

by | Apr 27, 2022 | Accounting, Bookkeeping

What raises the red flag for the IRS to audit your business or company?

It’s common for the IRS to randomly choose accounts to audit, but what does it take for them to go after someone directly?

Math mistakes, hiding income, deduction overkill, and round numbers are all red flags for the IRS. 

An IRS audit, as you may know, is an examination or review of your information and accounts to ensure you’re reporting your financials correctly. Any misstep at all can result in fees or fines. Any ongoing missteps can result in more than paying fees and fines though. 

The IRS wants to minimize the “tax gap” when they audit accounts. This means they want to close the gap on what they’re owed versus what they actually received. While this sounds simple on the surface, the IRS can destroy a business or company that avoids legal tax obligations and legal tax obligation reduction.

The tax law/code is written so that businesses and companies are incentivized to act in a specific way. Once you understand this, you can reduce tax obligations according to how the IRS wants you to do it!

With that being said, I’m going to answer some of the most common questions I get around IRS audits against businesses and companies.

4 IRS Audit Questions Answered

How Likely is it to Get Audited by the IRS?

If you take some time and Googled this question, you’d find statistics and probabilities all over the internet.

However, here’s a general rule to follow. If your adjusted gross income is over about $500K, you’re more than 1% likely to get an IRS audit notice. 

In other words, the more you make, the more they take – and the more they want to make sure you’re paying your appropriate tax obligations, but…

There are legal, ethical ways to reduce tax obligations according to the IRS’ own tax code. 

This is why having a professional in your corner to help plan and prepare taxes, as well as act as your outsourced accounting department, can help you save a ton in tax obligations.

How Bad is it to Get Audited by IRS?

The seriousness of an audit can range from 1-10 (10 being the worst-case scenario). It all depends on your financials and activity. The quickest way to reduce IRS audit scares? Bring your books current, create weekly or monthly reports and statements, and forecast your financial future. 

This is why I’m your outsourced accounting department – to manage your financials so the IRS has no reason to audit your account on purpose. 

Who Gets Audited by IRS the Most?

If we look at the rate of audit, the highest earners get audited the most frequently. Those who take home more than $10M per year get audited more often than those who take home less than $500K per year. 

While the stats show owners and executives getting audited more often, you can prepare and plan to reduce tax obligation according to the tax code the IRS uses to audit you. This means there are ethical and legal ways to protect your business, shelter money, and reduce obligation built into the system – but you already knew that, right?

How Do You Know if the IRS is Auditing You?

In the majority of cases, you’ll get what’s called a Notice of Audit and Examination Scheduled. This means the IRS is officially notifying you of their intent to audit your company, income, or more. The notice will specify the particular items being reviewed. It will also request the records required to clear your company and name from the audit. 

This is only phase one of an audit, but if you keep a good record, create spot-on reports and statements, and keep an outsourced accounting department on staff, then you’ll have a much easier time knocking down IRS audits.

How to Outsource Your Accounting & Bookkeeping Department

If you want to outsource your accounting and bookkeeping departments to a local expert, then let me get you caught up, manage your financial standing, reports, and forecast for a third of the cost! 

I deliver spot-on, accurate reports weekly, monthly, quarterly, or whenever you like. 

I reconcile and bring books current – the very first time, so you can work on growing your company instead of struggling inside of it! 

I forecast your financial future so you can grow your company toward financial success.


Outsource your accounting and bookkeeping departments to me, the Top Rated Local® Expert Accountant & Master Bookkeeper, for a third of the cost!



I am so happy I found Kendra and her bookkeeping and CPA services! They have been so efficient, reliable, friendly and accessible. I was previously with another company for 30 years and do not regret making this change.

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My company engaged Kendra for bookkeeping and accounting services and I am very happy that we did. Kendra is a pleasure to work with and always accommodating via phone or on our Zoom meetings.

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Furever Bookkeeping has been our financial savior. Our small business went through several bookkeepers before hiring Furever Bookkeeping. Furever Bookkeeping has been responsive, adaptable, and provided excellent communication throughout the pandemic. The level of customer service we have experienced is unmatched for a small business such as ours.

-Orman M.



Kendra brought years of my business’s financials current and balanced my books quickly. She and the whole furever bookkeeping squad know what they’re doing. Helped my business exponentially.

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Kendra served as our law firm’s outside, independent bookkeeper. When she started working for us she inherited financial books that were a complete mess. She was able to straighten them out and, since then, has kept our books accurately and complete. I can ask her at anytime where we stand financially and she can tell me instantly. She is very personable and a delight to work with. During her tenure working with us, even though she was an independent contractor, she became our firm’s CFO. I do not hesitate to recommend her.

-Fred P.



The entire Furever Bookkeeping team helped my Consulting Firm and me streamline our Accounting system using technology for efficiency sake. This saved us a ton. Kendra and her team are gems.

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Kendra has been instrumental for our business. If you are looking for an accounting team that is professional, timely, and great at communicating call Furever Bookkeeping. They were a life saver for my company!

-Renee D.



Kendra’s team is top notch and reconciled back years under budget. Thanks to the entire team. We continue to grow as a direct result of her knowledge and strategy.

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Kendra Moore
Owner/Master Bookkeeper
Expert Accountant

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Our clients range in annual revenue from $200K up to in excess of $75M+. Simple or complex financials across MULTIPLE industries are our Core Capabilities.

About Me

Furever Bookkeeping & Accounting Services brings 15+ years of Expert Bookkeeping & Master Accounting to each of our clients. Kendra Moore and her team have over 37 years experience in: Bookkeeping & Accounting. Serving MD, VA, DC, DE, PA & Surrounding Areas.

Our Certifications

We are approved Accounting & Bookkeeping Federal Government Contractors, DUNS #079524284, as well as for the State of Maryland, NAICS #541219.

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