Three Types of IRS Audits and How to Prepare for Them
Author: Keith Huggett
If you’ve received the letter most tax payers dread – correspondence from the Internal Revenue Service - what you do next and how you handle this correspondence can set the results for or against you.
There are 3 types of audits. A correspondence audit is really just a letter asking for more information or clarification as to why something was or was not included. An office audit means that the IRS would like you to come in to their office to review certain financial matters
A field audit means that an agent will be coming out to visit you. This is the most serious type of audit and you should get professional representation immediately
Unfortunately, people make critical mistakes during the audit process. Here’s a list of the top 13:
- Ignoring the audit notice
- Not reading the audit notice carefully.
- Bringing more records and documentation to the audit than requested
- Lack of preparation and organization
- Arguing with the auditor, even if they're being unreasonable.
- Deliberately lying during an audit
- Giving only copy of original documents to the IRS.
- Make it hard for the auditor
- Beginning the audit interview with a chip on your shoulder,
- Volunteering information that hasn’t been requested
- Coming to the audit with missing records
- Not understanding or knowing rights
- Not bringing your accountant with you
If you get a notification of an audit from the IRS don’t panic! Preparation for dealing with your audit starts with the most critical step – get professional representation firm a qualified firm like the Tax Office.
Contact us here, or call us at 916.773.7053
916.773.7053. for an immediate, no obligation confidential discussion of your situation.
