Type of IRS Audits by IRS   Office Audit, Field Examination,Matching documentation
1. The first type of audit examination is called the office audit. You will receive a notice from IRS instructing you when and where this audit takes place. Usually this is in the local IRS never your place of residence. The audit is usually kicked out because something in the IRS computer system did not like something on your return, it usually did not match up to the local profile. The DIF score was to high. The local examiner examines the tax return and you will have appeal rights should you chose.
2. The field examination. This audit is going to be more complicated and a specially trained examiner will conduct this audit. Usually, these cases are business related or more high end of high dollar. Some of these audits take months. There is no way the average person should ever represent themselves on this type of audit.
3. The matching documentation program. IRS has a system that matches up all W-2’s, 1099’s and various other documents filed within their system. This is all done or conducted by the mail. A footnote here, this program usually runs a year or two years after the due dates of the filing of your tax return.
Tips for Audits
* make sure the audit is limited only to the periods and the issues they spell out in the letter
* make sure they do not ask to audit other years
* make sure IRS does not drag “other” into your audit
* if you are going to owe money as a result of the IRS audit or examination is there a affordable plan to pay IRS on the back taxes.
* make sure you know your appeal rights if you do not agree with the decision.
Since the average person going into an audit has a natural fear the reality of this situation is that the taxpayer has no idea what to expect. The IRS audit seems like such a simple process. But all agents are trained to look for other issues, maybe on back tax years or tax years going forward. Many times they will drag the IRS audit or examination on to include the current tax year. There are many tricks the IRS uses on to the unsuspecting taxpayer. IRS agents vary and many of them conduct clean , smooth, simple audit but you have no idea who your luck of the draw will be.
How Fresh Start Tax helps you:
* we review all your tax records before the IRS examine and understand the strengthen and weakness of the tax years involved
* develop a plan of action how we will best handle the audit examination
* keep the audit to the years involved in the IRS initial request
* close the audit before a new tax year starts
* keep all penalties and interest as low as possible
* if taxes are owed we come up with a settlement plan
Call us today 1-866-700-1040