Do You Fear an IRS Audit? You Shouldn't if You Do Your Homework

If you document everything, there’s no reason to freak out if the IRS audits you. Audits are mostly about seeking documentation, not making accusations.

A dog sticks its head under the bed to hide.
(Image credit: Getty Images)

Audit. The word strikes fear in many people. They dread the scrutiny, penalties and other unfortunate outcomes when the IRS questions the accuracy or the veracity of their tax return.

The IRS recently announced its plans to significantly ramp up tax audits on the wealthiest taxpayers, large corporations and large, complex partnerships for tax year 2026. Audit rates will increase by more than 50% for those with total positive income of more than $10 million. That news is sure to trigger anxiety in some high-net-worth individuals.

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Matthew Chancey, CFP®
Certified Financial Planner and Author

Matthew Chancey is a Certified Financial Planner® and the author of “Tax Alpha Solutions: Effective Tax Management Strategies For High-Net-Worth Investors.” He is a highly sought tax, private equity and venture capital professional brought in to solve complicated tax cases for high-net-worth and ultra-high-net-worth individuals. Chancey has contributed to numerous media outlets, including the Wall Street Journal, Bloomberg, ABC, NBC, CBS and Fox News, among others.