Former IRS Agent Reveals How Audits Really Work (Gabe Hogan)

📚 Unlock the secrets to building wealth! My book and 12-module Masterclass cover everything I’ve learned about passive investing and creating financial freedom. Watch it on-demand for FREE: http://thewealthelevator.com/master 🤝 Join the Hui Deal Pipeline Club and get a one-on-one call with me to discuss your investment goals: https://thewealthelevator.com/club A host interviews Gabe Hogan, a tax attorney and former IRS revenue agent, about how IRS audits work, why high-profile taxpayers are treated as examples to drive compliance, and why taxpayers—not preparers—are usually on the hook for penalties and interest. Hogan describes IRS bureaucracy, outdated systems, staffing declines, and increased hiring of non-tax personnel, plus the growing use of AI models that flag more returns amid a shrinking workforce. He explains how returns are graded with DIF scores, how agents and managers triage audit “stacks,” and why clear categorization and attaching substantiation (e.g., cost segregation reports) can reduce audit risk. They discuss common self-prep and CPA errors (TurboTax, misclassification, NIIT on business exits), documentation needs, audit escalation paths (agent, manager, Appeals, tax court), and strategies like the Augusta Rule when properly documented. 00:00 Celebrity Audit Fear 00:50 Wild Deduction Stories 02:10 Meet Former IRS Insider 03:36 From Bulls to Tax Law 06:14 Credentials Alphabet Soup 13:09 Taxpayer Liability Reality 14:58 Why Not TurboTax 18:24 Augusta Rule Done Right 22:53 Breaking Up With Your CPA 25:20 How Audits Get Picked 27:13 DIF Scores Explained 29:42 Stacks Managers and Backlogs 33:59 Statutes and Audit Chess 35:28 Audit Negotiation Tactics 37:12 Audit Types And Escalation 40:19 IRS Fear And Compliance 42:14 Gray Area Tax Strategy 44:45 Substantiation And Materiality 51:23 Regional IRS Culture 54:25 Politics And IRS Slowdown 56:29 Guest Wrap And Contact 57:14 Deal Desk Pitch 01:00:11 Due Diligence Framework 01:02:46 Final Call To Action Connect with me: LinkedIn: https://www.linkedin.com/in/lanekawaoka/ Facebook: https://www.facebook.com/TheWealthElevator Instagram: https://www.instagram.com/TheWealthElevator Lane Kawaoka is a developer and multi-family syndicator who owns 10,000+ rental units and is the leader of “Hui Deal Pipeline Club” which has acquired over $2.1 Billion AUM of real estate by syndicating over $200 Million Dollars of private equity and most importantly distributed more than $45M back to our investors since 2016. Check out our Top-50 Investing Podcast, The Wealth Elevator. Hosted on Acast. See acast.com/privacy for more information.