Still–and this is key–your HNW client will “have the burden of proof and must substantiate the deductions they took,” added Gail Rosen, a CPA with Wilkin & Guttenplan in Martinsville, N.J.
“The biggest headache,” Kollauf added, “is comporting documented files with the information request so that the information [your HNW client provides] answers what they’re looking for and matches what was reported on a tax return. If there’s a discrepancy, you have an opportunity to provide credible extraneous evidence that the IRS will consider in determining whether to make an adjustment to your return or not.”