Frequently Asked Questions

What types of audits are there?

Answer: Some examinations are handled entirely by mail. Examinations not handled by mail can take place in your home, your place of business, an Internal Revenue office, or the office of your attorney, accountant, or enrolled agent. If the time, place, or method is not convenient for you, the examiner will try to work out something more suitable. However, the IRS makes the final determination of when, where, and how the examination will take place.

1). Correspondence Audits:
This is a relatively simple procedure in which the IRS asks you to document an item on your return by a specified date. This is usually a routine test for compliance with certain items on your return. You'll have to dig out your receipts or other documents, make a photocopy for the IRS and mail it in with a copy of the audit request.

2). Office Audits:
The IRS may ask you to report to a nearby IRS office and document one or more items on your return. You may be able to send them copies of this proof in advance of the appointment and resolve the issue without actually going to the office. This is usually an easy process unless discrepancies or errors prompt the IRS to dig deeper into your return.

3). Field Audits:
The IRS visits you and will ask you to provide documentation of various items on your return and to meet with an IRS agent for a thorough review of your records. You are allowed to decide when and where to schedule the meeting. Choose a neutral location - preferably in your accountant's or attorney's office, since they probably know more about tax laws than you do, and they can provide the best possible assistance. A neutral site also prevents the IRS agent from prejudging your income level based on a first impression of your home or office - an impression that is generally not to your advantage.