Tuesday, April 8, 2008

Understanding The IRS Office Audit

Where would you guess an IRS office audit is conducted? That’s right! An IRS office audit takes place in an IRS office. Less experienced IRS employees (typically an IRS tax auditor) usually carry out this type of audit. Office audits are mostly concerned with simple tax matters and can be limited to a few simple items on your tax return.

Now do not be fooled. IRS office audits are more complex than IRS correspondence audits, but are not complex enough to require a Field IRS Audit. Most IRS office audits concern common items found on tax returns, such as exemptions, travel and entertainment expenses and casualty losses.

If you find yourself the subject of an IRS office audit, you will receive a letter (sometimes referred to as an “appointment letter”) requesting you to bring in documentation supporting the tax items on your tax returns that are in question. Depending on just how much documentation the IRS is requesting, you might be able to send necessary documents through the mail. Obviously if you can handle the matter this way, I would. If this option is not afforded to you, suck it up and bring to the appointment all tax documents that the IRS tax auditor requested. If the items on your tax return are legit and you can back that information up, you obviously have nothing to worry about. Now if that’s not the case…be ready to pay up.


For information on:
Correspondence Audit—see this past article.

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