The Most Common Types of IRS Audits

The IRS performs over a million audits per year on taxpayers and businesses. However, not every audit is performed in the exact same manner. There are actually three types of audits: the letter audit, the office review, and the field visit. If you are worried about the possibility of an IRS audit, we have provided explanations of the three main types below.

Letter Audit

The letter audit is by far the most common type of IRS audit. Typically, letter audits are a simple request for more information, or a list of possible math errors. Some times the audit is just to inform you of a correction that has been made to your return, which can result in either a tax bill, or a larger refund. The IRS may ask you to supply them with a few documents or receipts, and you will be required to respond.

The IRS may take a while to process your response, and it could take weeks or even months before you hear back regarding the audit. With a letter audit you are not required to meet face to face with any IRS representatives. All correspondences can be completed through the mail.

Office Review

The second, and more intimidating type of IRS audit is the office review. You will be asked to meet with an IRS auditor at a place in close proximity to your home address. The representative will work with you to schedule a review at a time that is convenient for you, and you can feel free to ask to reschedule any appointment that might not fit into your schedule.
In their request for an office audit, the IRS will usually send you a request for information. It will tell you exactly what documentation the IRS wants you to bring to the audit. While this can be a very stressful situation, the good thing is that the outcome really lies in your hands. Make sure to bring all of the items requested, and be prepared to answer difficult questions about your tax return. You should always be honest during the audit, as lying can lead to even more problems and IRS penalties. If you are really nervous about the office review, then you can always consult with a CPA or tax professional before the audit takes place.

Field Visits

With a field visit, the IRS will send representatives to your business to conduct the audit. This type of audit is usually only conducted on businesses, and is very unlikely for individuals. However, there are occasions where the IRS will make field visits to individual taxpayers, or home based businesses. The IRS auditors will review your books, receipts, and financial statements to make sure everything is in order.

With a field visit, many taxpayers seek legal representation to ensure a fair audit. In some instances you might not be required to be present for the audit if you have legal counsel to handle the audit on your behalf.

The Tax Lady Roni Deutch and her law firm Roni Deutch, A Professional Tax Corporation have been helping taxpayers across the nation find IRS tax relief for over seventeen years. The firm has experienced tax lawyers who can fight tax debts on your behalf.