You are getting ready to go through the Internal Revenue Service (IRS) audit process, and you feel nervous about what it will entail. The truth is, there is more than one type of audit, and they are not created equal, based on audit defense reviews. Here’s a look at the three types of audits you may undergo with the IRS.
The first kind of IRS tax audit is the correspondence, or mail, audit. This is the most commonly used audit method. If your return isn’t very complicated, you can expect to undergo this kind of audit. This is one of the easiest audit methods because a representative of the IRS won’t need to speak with you as part of the audit. Instead, you’ll simply send the requested documents to the IRS by mail.
The second audit type is the office audit. During this kind of audit, you’ll be required to take documentations and receipts to a nearby IRS office. You can expect to undergo this kind of audit if you own a small business, or if the IRS requires a great deal of paperwork from you.
The third audit type is the field audit. In this situation, an IRS agent will come to your business place or home. This kind of audit is a lot more complex than the previous two audits, so it is paramount that you are completely prepared for it.
Note that an IRS auditor has undergone special training to scrutinize your initial interview to get a good idea about your financial standing. In addition, these auditors are known to ask questions designed to test how trustworthy you are, so it is critical that you avoid lying to them. Because a field audit can be intimidating, it would behoove you to have a tax professional represent you when you communicate with the IRS during the audit.