Surviving IRS Audits

IRS Representation Makes Everything Smoother

Few things strike fear in the hearts of taxpayers than the idea of IRS Audits, but with proper representation, they don’t have to be terrifying. Nobody would want an IRS Audit, but they don’t have to destroy you, your business, or your finances. You can learn the IRS’s perspective on the process from the IRS Website Page on IRS Audits.

Three Types of IRS Audits

Types of Audits Matter

The IRS divides it’s audits into categories, and the most common type isn’t really that scary. Indeed, when you think of an audit, you think of an intrusive process where the IRS combs through your business. However, the reality is more varied. The three types of audits are the following:

  • Correspondence Audit
  • Field Audits
  • Office Audits

Each type of audit has its quirks and rules, but with proper representation you should be able to get through the process relatively unscathed. You will need to have your documentation in order, but you will not have your life turned upside down.

Correspondence Audit

A Basic Mail Audit

Fortunately the most common is the correspondence audit, and it’s straightforward with experienced IRS Representation. Within the accounting and tax world, the correspondence audit is called a “letter audit” or a “mail audit.” Essentially the IRS has some questions, and asks you to mail it in. Most of our Tax Clients choose Audit Protection with their tax return, which covers up to 5 hours of audit work. Since most audits are of the correspondence audit process – especially the IRS CP2000 Notice, these hours cover our research and response time, so you just send us a photo of the letters on your phone and we handle everything.

Field Audits

When the Taxman Shows Up

Field offices are the type of audit that strikes fear in people. In a field audit, the IRS agent will come to your business or home to look at your records. A Field Audit is particularly perilous, because they may try to find out about things while your guard is down because they are in your home or office. These audits are the most terrifying, and while we will help you prepare for them, we will usually at least coordinate with legal counsel to help contain them.

Office Audits

Going to the IRS Building

Office Audits are the second most common, and relatively manageable. In an Office Audit, you have scheduled meetings with an IRS Agent and their office. Each meeting you will bring the requested documentation, and the process of reviewing will continue. With our IRS Representation Clients, we help them prepare for the meeting, and usually attend the meeting with them to help make sure nothing unsuspected happens. Office Audits can usually be dispatched with quickly with proper planning.

Surviving the IRS Audit Process

We’ll get through this together

The secret to surviving the IRS Audit Process is keeping a cool head, and managing the process well. The IRS Agents do this all day, so they know how to rattle a taxpayer. You need to rely on solid documentation, a plan to give the IRS only the information that they are entitled to, and an understanding that you aren’t a push over for them. With the right strategy and representation, you will get through your IRS Audits.

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Your Success is Our Success!