Estate and Gift Tax Audit Defense: Protecting Your Family's Legacy from IRS Challenges Estate and gift tax audits represent some of the highest-stakes examinations the IRS conducts. With individual assessments frequently reaching millions or even tens of millions of dollars, the consequences of an adverse audit outcome can fundamentally alter a family's financial legacy. The IRS examines a disproportionately high percentage of estate tax returns — roughly 10 to 12 percent of returns reporting gross estates above certain thresholds — making estate tax audit defense an essential consideration for high-net-worth families and their advisors. Understanding the estate and gift tax audit process, common areas of IRS scrutiny, and effective defense strategies is critical to protecting the wealth you have worked a lifetime to build. At Neil Jesani Advisors, our team of Tax Professionals, CPAs, and Enrolled Agents has deep experience representing executors, trustees, and beneficiaries in estate and gift tax disputes with the IRS. From initial examination through Appeals and tax dispute resolution resolution process, we provide comprehensive defense of your family's interests. What Triggers an Estate Tax Audit Not every estate tax return is audited, but certain factors dramatically increase the likelihood of examination. Understanding these triggers helps families and their advisors prepare for potential scrutiny and ensure that returns are filed with IRS audit defense in mind from the outset. Large Estates The single most significant factor in determining whether an estate tax return will be audited is the size of the gross estate. The IRS applies disproportionate resources to examining the largest estates, with audit rates increasing substantially for estates above $5 million, $10 million, and $20 million. The IRS data consistently shows that estates in the highest value categories face audit rates several times higher than smaller estates. The logic is straightforward — larger estates present...