Troy Silfies, VP of Tax at Hall CPA, specializes in IRS audit representation for real estate investors. In this engaging discussion, he reveals what triggers IRS audits and shares strategies to avoid them. Troy explains how one client transformed a daunting $209K tax bill into just $296 through meticulous documentation. He emphasizes the necessity of being 'audit-ready' post-TCJA and outlines crucial steps to take when receiving an IRS notice, ensuring listeners are well-prepared for any tax scrutiny.
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volunteer_activism ADVICE
IRS Audit Types Explained
IRS audits come in three types: correspondence, office, and field audits.
Correspondence is by mail only while office and field involve in-person interaction with auditors.
volunteer_activism ADVICE
First Step After Audit Letter
When you receive an IRS examination letter, do not panic and read it thoroughly.
Immediately get a qualified CPA or tax attorney to represent you and handle communications.
question_answer ANECDOTE
Short-Term Rental Audit Win
A client with short-term rentals successfully defended an IRS office audit by proving material participation and rental stay guidelines.
Clear logs and documentation restored IRS trust, resulting in a no change audit outcome.
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In this episode of the Tax Smart REI Podcast, Thomas, Troy, and Ryan unpack real IRS audit case studies involving real estate investors and break down exactly what happened, how they responded, and how they won.
Tune in to learn:
- What triggers IRS audits for short-term rentals and REPS (and how to avoid them)
- The one thing most CPAs get wrong when representing clients in an audit
- How a $209K tax bill was reduced to $296—with documentation and strategy
- Why being “audit-ready” matters more than ever in the post-TCJA world
- What to do (and not do) the moment you receive that dreaded IRS letter
If you want to understand what an audit really looks like and how to protect yourself before one ever happens, this episode is a must-listen.
To become a client, request a consultation from Hall CPA, PLLC at go.therealestatecpa.com/3KSEev6
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Tax Smart Real Estate Investors Podcast