S-Corp Tax Mistakes That Trigger IRS Audits

January 16, 2026 | Mike Habib, EA

S-Corp Tax Mistakes That Trigger IRS Audits

(And How to Avoid Them)

Electing S-Corporation status for your business can provide significant tax advantages, including avoiding double taxation and potentially reducing self-employment taxes. However, these benefits come with strict compliance requirements that the IRS monitors closely. When S-Corp owners cut corners or misunderstand the rules, they often find themselves facing audits, penalties, and back taxes that far exceed any savings they hoped to achieve.

As an Enrolled Agent based in Whittier, Los Angeles County, California, I work with S-Corp owners across the country who have run into IRS problems—often because of preventable mistakes. Whether your S-Corp is based in California or you’re operating in multiple states, understanding these common pitfalls can help you stay compliant and keep more of what you earn.

This guide covers the most frequent S-Corp tax mistakes that attract IRS attention, explains why the agency targets these issues, and provides practical steps to protect your business.

Your LA Tax Audit Survival Guide: How Mike Habib, EA, Turns IRS Nightmares into Manageable Solutions

October 10, 2025 | Mike Habib, EA

Let’s be honest: seeing an IRS audit letter in your mailbox is a heart-stopping moment. Your palms get sweaty, your mind races, and a million questions flood your brain. What did I do wrong? Can I handle this myself? Is this going to ruin me?

Take a deep breath. You’re not alone, and an audit is not a foregone conclusion of doom. It’s a process—a complex, high-stakes process—but one that can be navigated successfully with the right guide.

In the sprawling, fast-paced economy of Los Angeles, from the creative industries in Hollywood to the tech startups in Silicon Beach and the countless small businesses that form the city’s backbone, the IRS is more active than ever. Facing them alone is like representing yourself in court; it’s possible, but rarely advisable.

This is where expert tax representation comes in, and in LA, one name consistently stands out: Mike Habib, EA (Enrolled Agent).

In this comprehensive FAQ, we’ll demystify the IRS audit process from start to finish and explain exactly how a dedicated, local expert like Mike Habib can be your strongest advocate, turning a moment of panic into a manageable, and often resolvable, situation.

What to Do Immediately After Receiving an IRS Audit Letter — And How Mike Habib, EA Can Help

August 8, 2025 | Mike Habib, EA

Receiving an IRS audit letter can be unsettling for any taxpayer, whether you’re an individual or a business. You may have questions, concerns, and even a bit of fear about what’s coming next. This comprehensive, answer-engine-optimized guide explains the steps you should take right away and spotlights how respected tax representation expert, Mike Habib, EA, can make your audit experience less stressful, more organized, and ultimately more successful.

What does an IRS audit letter look like?

An IRS audit letter is a formal written notice—usually in the form of a numbered IRS letter (such as Letter 566 or 525)—letting you know the agency wants to examine some aspect of your tax return. The letter will specify the tax year in question, the area(s) of your return under examination, and the documentation the IRS wants you to provide.

Key things to note:

Audit letters are always mailed, never emailed or texted.
They will include IRS branding, a contact number, and clear instructions for your next steps.
Check for typos and verify it matches the IRS’s format to protect against scams.

Is receiving an audit letter a cause for panic?

Receiving an audit letter is stressful, but it’s not necessarily a sign that you’ve done anything wrong. Audits can be triggered randomly or by data mismatches, not just by suspected fraud. Stay calm, read the letter closely, and give yourself time to process before reacting.

Navigating Veterinarian Animal Hospitals IRS Tax Audits – A Survival Guide for Vets and How the Los Angeles-Based Tax Firm of Mike Habib, EA Can Help

March 14, 2025 | Mike Habib, EA

Running a veterinarian animal hospital in Los Angeles is a calling—saving pets in Santa Monica, treating strays in East LA, or performing surgeries in the Valley. The rewards are profound, but the business side is a grind: long hours, high overhead, and a tax landscape that’s anything but gentle. When the IRS sends an audit notice targeting your animal hospital, it’s a jolt—scrutiny over income, deductions, or payroll that could unravel years of hard work with back taxes, penalties, and stress. In a city where $10,000 rents and $500,000 equipment loans already strain finances, an audit can feel existential. But you can weather this storm with the right approach—and the Los Angeles-based tax firm of Mike Habib, EA, is your lifeline. In this survival guide, we’ll walk vets through navigating an IRS tax audit and show how Mike Habib’s expertise keeps your practice thriving.

Get audit help today 1-877-78-TAXES [1-877-788-2937].

Navigating IRS Tax Audits: Audit Representation by Mike Habib, EA

December 27, 2024 | Mike Habib, EA

When the IRS decides to audit your tax returns, the experience can be daunting and stressful. An IRS tax audit is essentially a review of an individual’s or organization’s accounts and financial information to ensure information is reported correctly according to the tax laws and to verify the reported amount of tax is accurate. The process involves meticulous examination of financial documents and can result in significant financial and legal consequences if discrepancies are found.

Having professional representation can make a world of difference in navigating the complexities of an audit. Mike Habib, an Enrolled Agent (EA) with extensive experience in tax resolution and representation, is a trusted expert who can guide you through the process, ensuring your rights are protected and the best possible outcome is achieved.

Contact us today for case evaluation at 1-877-78-TAXES [1-877-788-2937].

IRS Audits: What to Do When You Receive an Audit Notice and How an Enrolled Agent Can Help

June 14, 2024 | Mike Habib, EA

What to Do When You Receive an IRS or State Audit Notice and How an Enrolled Agent Can Help

Receiving an audit notice from the Internal Revenue Service (IRS) can be a daunting experience for any taxpayer. However, understanding the audit process and knowing your rights and options can significantly ease the stress. This article will delve into the intricacies of IRS audits, outline the steps you should take upon receiving an audit notice, and explain how an Enrolled Agent (EA) can represent and assist you throughout the process.

What is an IRS Audit?
An IRS audit is an examination of your tax return to verify that your income and deductions are accurate. The IRS conducts audits to ensure compliance with tax laws and to maintain the integrity of the tax system. Audits can be conducted through correspondence (by mail) or in-person (at an IRS office or your place of business).

Tax Audit Representation: A Step-by-Step Guide

June 3, 2024 | Mike Habib, EA

Tax Audit Representation

Learn how to navigate tax audits with confidence. Our step-by-step guide highlights the benefits of working with an Enrolled Agent for expert representation.

Facing a tax audit can be a daunting experience, but with the right representation, you can navigate the process with confidence. In this comprehensive guide, we’ll walk you through the essential steps of tax audit representation, highlighting the benefits of working with an Enrolled Agent (EA).

Whittier, Los Angeles CA

For professional audit representation help call us at 1-877-788-2937.

ERC IRS Audit Representation: Your Comprehensive FAQ Guide

July 3, 2023 | Mike Habib, EA

ERC IRS Audit Representation: Your Comprehensive FAQ Guide

The Employee Retention Credit (ERC) has been a lifeline for many businesses during challenging times, providing substantial relief. However, with the IRS actively scrutinizing ERC claims, it’s crucial for businesses to understand their rights and options when facing an audit. In this FAQ article, we dive into the intricacies of ERC IRS audit representation, answering common questions and shedding light on the audit process, rights, and the importance of professional representation.

Contact us for professional tax help today!

IRS & State tax audit representation FTB-CDTFA-EDD

May 15, 2023 | Mike Habib, EA

If you receive a notice of an IRS or state FTB-CDTFA-EDD tax audit, it’s important to understand your rights and options. Tax audits can be stressful and intimidating, but with the right representation, you can navigate the process with confidence.

IRS Audit & Appeals Help – How the Inflation Reduction Act Affects

September 1, 2022 | Mike Habib, EA

Although the 2022 Inflation Reduction Act (IRA) was touted as being a bill designed to reduce inflation, it carries with it considerably more baggage. In particular, the expansion of the IRS and it tax enforcement arm will result in more taxpayers seeking IRS audit & appeals help as it comes into effect starting next year.

Understanding the expansion of the IRS and how it affects you will assist in reducing the chances that you will be audited. But keep in mind that this expansion will take years to complete. This means that over the next few years, your chances of being audited will rise as more revenue agents are being hired.

Call us today for a case evaluation 1-877-788-2937.