Office Audit
What Is an Office Audit?
An office audit is an examination of a taxpayer's records by the Internal Revenue Service (IRS) from its offices, and not at the taxpayer's home or office, to guarantee compliance with tax laws. Generally more extensive than a correspondence audit however less so than a field audit, an office audit is utilized when agents require an eye to eye investigation.
Understanding Office Audits
In an office audit, a representative from the Internal Revenue Service (IRS) meets the taxpayer and reviews the taxpayer's records face to face, ordinarily at an IRS office. The purpose of an office audit is to ensure the taxpayer is precisely reporting income and deductions and paying the lawful amount of tax.
These audits frequently just cover a couple of specific issues recognized by the IRS in a written notice to the taxpayer. This notice additionally recognizes which records the audit will survey.
The IRS might choose a tax return for an office audit at random as part of routine compliance efforts. A tax return may likewise be chosen due to thought errors in view of jumbled reports or the examination of related taxpayers' returns. IRS Publication 556 gives subtleties on examination and audit procedures.
Different Types of Audits
The IRS generally directs the business of an audit in one of three ways: a correspondence audit, an office audit, or a field audit. Of these, a correspondence audit is the most common (and generally viewed as the least serious form of audit). The field audit is the least common and is most frequently an indication of broad issues that should be settled. An office audit is a middle ground between the two.
Assuming that you or your business is audited — no matter what the audit type — reaching an attorney about the matter is fitting.
Correspondence Audit
Correspondence audits are led by means of mail. Such audits are generally utilized for less complex issues that include more modest amounts of money. With correspondence audits, insofar as the taxpayer has evidence, the audit is closed.
Field Audit
A field audit is the most far reaching type of common tax audit. In a field audit, IRS agents come to the taxpayer's office, home, or bookkeeper's office to investigate tax records, think about evidence, and check that all taxes were paid and reported accurately.
Features
- An office audit is an examination of a taxpayer's records by the Internal Revenue Service (IRS) from its offices, and not at the taxpayer's home or office, to guarantee compliance with tax laws.
- The IRS might choose a tax return for an office audit at random as part of routine compliance efforts.
- Different types of audits incorporate correspondence audits, which happen through U.S. mail, and field audits, which occur at a taxpayer or business proprietor's office or home.
- IRS Publication 556 gives subtleties on examination and office audit procedures.
- Office audits frequently just cover a couple of specific issues distinguished by the IRS in a written notice to the taxpayer and furthermore recognizes which records the audit will survey.
