Examinations/Audits

Examinations/Audits

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There are Three Kinds of Audits

Correspondence
Office
Field

In most audit situations the auditor is just interested in making sure you reported items on your tax return correctly. They don't want you to pay anymore than the law requires, nor any less. Despite popular opinion, they're not out for blood. True, there are some rogue agents and that is when it really pays to get qualified professional help.

Often they will ask you to bring with you copies of your tax returns for the year prior to, and the year after, the year that is being audited. A lot of people fall into this one. You don't have to provide those years unless the audit of the year in question indicates the same error probably occurred in the other years also.

Never give up your original records! Only give them photo copies.

Correspondence Audit
This audit is usually done by mail. This is where they find something that is not right in your tax return and they send you a letter about it and ask you to provide some information to support a position you have taken on your tax return in regards to an income or deduction item.

The CP2000 notice is an under reporter issue. That means the IRS found income that doesn't appear to be on your tax return, so they are assessing additional tax on you. This income is usually something that was reported to the IRS by a third party by way of a W-2, Form 1099 or other report. That doesn't mean the IRS is correct. Review it and file a protest if you disagree.

Office Audit
This audit is usually conducted in a local IRS office. You go in and meet with the auditor to review your records.

Field Audit
This audit is usually conducted at your home or place of business so they can observe more about you and/or verify some of your claims.

Appeals & Tax Court

The Tax Collector

How the IRS can Collect Tax Debt

Do You Need Professional Help?

You have the right to Representation!

You do not have to deal with the IRS alone, or at all! You can be represented by an Enrolled Agent (EA), CPA or an Attorney.

When you meet with the IRS without a Representative and you feel you need help, you can request to
delay the meeting until you can obtain a Representative. Generally they will give you up to 30 days.

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