You just received a notice that your taxes are being audited, now what?
The first thing to consider is whether or not to hire a professional to represent you. Auditors are trained to extract more information from you than you have a legal obligation to provide. Auditors know that most people fear them and are ignorant of their rights. As a result, they know they can use that fear and ignorance to their advantage. That is why you want to have an advocate working on your behalf, someone who has been through the process before.
The four types of audits:
Correspondence Audit
The IRS service center asks you for more information concerning a part of your tax return. The IRS is generally seeking receipts, checks and similar information.
Office Audit
The IRS Service Center asks you to bring certain documents in to your local IRS office. The audit is conducted there.
Field Audit
An IRS agent comes to your place of business to conduct the audit in person.
Taxpayer Compliance Measurement Program Audit
This is the most extensive type of audit, where every part of your tax return must be substantiated by documents, including birth and marriage certificates. The primary purpose of this audit is to update the data used to write the computer scoring program.
If you’ve received an audit notice from the IRS, or your state tax agency, contact us to receive a complimentary consultation.
Complimentary Audit Consultation