Types of IRS Tax Audits

An IRS audit can be one of the most trying experiences you will face. IRS auditors are notorious for looking until they find a problem they can use to extract more taxes from you. As I’ve stated before, we believe taxpayers should pay their fair share of taxes, but we also believe that you shouldn’t pay one dime more than your fair share. And while a taxpayer facing a field audit or an in-office audit is typically terrified, taxpayers who have had a correspondence audit typically don’t even understand that they’ve been audited. There are three types of IRS tax audits.

Correspondence Audit

The correspondence audit is the most common type of IRS tax audit. It might surprise you to know that most people who have been singled out for a correspondence audit don’t even know they’re being audited. The reason is that the IRS doesn’t come out and declare they are auditing you. Instead, they send a notice to you indicating that the IRS made a correction to your tax return. While a correspondence audit could technically be used to notify you that you owe less than you paid, it is most commonly used to inform you that you owe more and payment is due immediately. The IRS may also ask you to send in additional information to clarify something on your tax return. Even with a correspondence audit, it is usually a good idea to have a tax representative help you address the IRS in a way that won’t get you into trouble. Providing the wrong kind of information can lead to expansion of the audit into more areas or a more detailed investigation into items not initially targeted in the correspondence audit.

Field Audit

Among the types of IRS tax audits, the field audit is the least likely to involve individuals. Field audits are primarily used to audit businesses. The IRS sends an auditor, or a team of auditors, to a business to examine the financial books, documents, and transactions, generally to make sure the business is not short-changing the IRS or cooking their books. Generally in these circumstances, the IRS auditors will work with the corporate financial officer to go through the business’ income and expenses.

In-Office Audit

The in-office audit is the type of IRS tax audit most people think about when talking IRS audits. The IRS schedules an appointment for you to bring all your tax documentation to an IRS office location. At the IRS offices, you would then meet with an IRS auditor and substantiate your tax return with your supporting tax documentation. While it’s never a good idea to face an IRS tax audit on your own, if you are facing an in-house audit, you need to seek IRS audit help before responding to the IRS. The IRS auditors assume you have full and complete knowledge of the tax laws and regulations of this country. They also assume you have read and understood each of the thousands of publications issued by the IRS on various tax topics. Tax Masters understands that this is not what you do, but it is what we do.

IRS Audit Help

At Tax Masters, we supply more people and businesses with IRS audit help in one year than most CPA firms or accounting firms do in their entire professional life. Tax Masters has a great success record with all three types of IRS tax audits. Whether the IRS notifies you that you owe more than you reported on your tax return, shows up at your door asking to review your books, or schedules an in-office audit, the Tax Masters audit team has the experience and the latitude to help you resolve your IRS audit favorably. Don’t make the mistake of going through any type of IRS tax audit alone. Tax audit help is a simple click away.

Until you need us,

Patrick Cox Tax Masters