The IRS Flagged His Return: Here's the Playbook That Won the Case [E226]

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Why does the IRS really pick a tax return to audit? And if a CPA who does this for a living can still get dragged through a three-year fight, what chance does the rest of us have?

In this episode, Hunt Demarest, CPA, steps out from behind the desk to tell his own story — a three-year audit of his 2023 tax return that started with a suspiciously timed refund and ended with a win built entirely on paperwork. Hunt breaks down what gets a return flagged in the first place, the one habit that separates audits you win from ones you lose, and why "innocent" and "victorious" aren't always the same outcome — proven by a client who did everything right and still wrote a $25,000 check to the IRS.

Hunt also pulls back the curtain on what his firm's audit protection covers, why informational requests aren't the same as a real audit, and why a single missing signature nearly cost him a case tax law was already on his side of. Whether you're worried about a deduction on your own return or want to know what triggers an IRS letter, this episode is a real-time look at how audits actually play out — not the version you hear secondhand.

What You'll Learn...

(02:51) Hunt's own audit story begins — three years, one 2023 tax return

(03:58) Why the audit really happened — a refund, then a red flag a month later

(04:41) Getting flagged, part 1 — why large credits are an open invitation to audit

(08:24) Getting flagged, part 2 — the oversized expense line the IRS can't ignore

(09:48) Inside the process — what an IRS "information request" audit actually looks like

(15:06) The rule that wins audits — documentation, documentation, documentation

(19:15) Audits take time, and time is money — even when you win