IRS FORENSIC AUDIT

by David Nuttle

Depending on who is POTUS and what political party are in power, if your company or your charity is engaged in a project the powers-that-be object to, you may be subject to a most punitive IRS forensic audit. It's important to know how IRS' weaponized audits are conducted in the event you experience one.

An IRS auditor, trained in forensic audits will examine your financial records, project files, and interview your staff, Directors, employees and project personnel. In addition, the auditor will conduct an inventory of all you own to include office and field equipment. Records of all income and expenses paid will be carefully examined.

My charity, NPI, experienced an IRS forensic audit because a powerful politician did not like an overseas project NPI had at the time. The IRS auditor was a friend of a friend, so we

experienced minimal frustration. One problem: The auditor discovered we had a Paddlefish aquaculture experiment and holding Paddlefish was illegal at NPI's research site in the state of Oklahoma. Oklahoma law required that all Paddlefish had to be released for sport fishing.

We had not discovered that law.

Be prepared for the possibility of an IRS forensic audit and pray yoiu never have one.