Friday, March 21, 2008

What Can I Get You?

If the IRS was a local pub, they would have several different audits on tap. How about a nice smooth Coorespondence Audit? ...Or better yet, how about a pint of something more stout...say a Field Audit? Whatever you fancy, I am sure the IRS will serve it up nicely.

You see there are many types of IRS audits. Some types of IRS audits are less aggressive than others. As no surprise, most types of audits are designed to increase the tax bills for the tax payer and increase income for the IRS.

Four common types of audits include:

Correspondence Audit: The correspondence audit is the simplest type of IRS audit. During this audit, the IRS sends the taxpayer (via mail) a request for proof of a particular deduction or exemption taken by either completing a special form or sending photocopies of relevant financial records. On a positive note, the tax payer has the greatest chance of winning a correspondence audit.

IRS Office Audit: An IRS office audit is done in an IRS office and is mostly about simple tax matters.

Field Audit: Field audits are usually the most complete IRS audits and are performed by experienced IRS officers. I am afraid to say that a field audit usually results in additional tax bills for the tax payer.

IRS Repetitive Audit: An IRS repetitive audit is an IRS audit conducted on the same tax payer over and over. If no additional tax bills results from an audit and the IRS wants to audit the same tax payer again, the tax payer can ask the IRS to discontinue the IRS audit on the ground of IRS repetitive audit.

This week I will be discussing these four types of audits in further detail. Stay tuned.


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