John Trapani, CPA

Putting The Pieces Together For You

(805) 497-4411

2975 E. HILLCREST DRIVE

THOUSAND OAKS, CA 91362

“I Have a Casualty Loss – Will It Prompt An IRS Audit?”

As a local accountant, I have clients in Westlake Village and throughout the Conejo Valley. As we all know, in our area we’re subject to a variety of disasters – fires, floods and good old-fashioned earthquakes.

It’s difficult enough dealing with these disasters – repairing and rebuilding as necessary. If you have good insurance in place, then the job becomes much more manageable. But even with insurance you’re often left with a casualty loss. In this case, one of the common questions I hear is, “Will filing a casualty loss prompt an IRS audit?”

Good question! And the quick answer is – no one knows! No one, that is, outside of the IRS – and they ain’t talking.

Still, we have indications of the process the IRS uses to select audits, and I’ve written more about this on my Accountant For Disaster Recovery blog.

Categorized under: IRS Guidance, Tax Advice
Tags: , ,

July 31, 2014