Practice
Audits and appeals, answered on paper
Most audits are letters, not meetings. We answer them in writing, keep the questions to what the examiner asked, and go to the IRS Independent Office of Appeals when the result is wrong.
An audit letter names the tax year and the items under review: a deduction, a credit, income that didn't match a form the IRS received. The first job is to read it closely and answer only that.
If the audit is at an office or at your business, one of us goes in your place, with a file built beforehand. If the examiner's report gets the law or the numbers wrong, we write the protest and take it to Appeals, and to the Tax Court if it comes to that.
What you get back
Every audit file holds the same four things, in this order.
- 01
A one-page summary
What the examiner is asking, by tax year and by item, and the date the reply is due.
- 02
A document list
The receipts, statements and logs that answer each item, and the ones that won't help.
- 03
The reply, as sent
A copy of every letter we file for you, with the date it went out.
- 04
The result, explained
The closing letter or the report, what changed, and what you owe or get back.
Before you answer the examiner
Do I have to meet the auditor myself?
Usually not. Once you sign a power of attorney (Form 2848), we can talk to the examiner and attend in your place. You may be asked to come in if the IRS issues a summons, which is rare.
How far back can the IRS look?
Generally three years from the date you filed. It's six years if income was understated by a quarter or more, and there's no limit for a return that was never filed or was fraudulent.
What if I don't agree with the report?
You can ask for a conference with Appeals, which is separate from the examiner. If that fails, the notice of deficiency gives you 90 days to petition the Tax Court.
Can a letter audit turn into a field audit?
It can, though it seldom does when the reply is complete and on time. That's why we answer exactly what was asked and nothing more.
Have an audit letter on the table?
Send the first page. We'll tell you what kind of audit it is and what answering it involves.