The words IRS audit strikes fear into even the bravest soul.The best way to strike back this fear is knowledge.Knowledge is power.I hope to give you a small piece of knowledge to help you understand the different types of IRS business audits.

Correspondence Audit

This is the first type of audit we will discuss.This is the simplest form of audit.To some it is not eve considered a true audit.In a non-assessment correspondence audit,the IRS sends you a letter in the mail informing you that a piece of information was left out such as a schedule or a certain form.In which case you provide them with the information and or paperwork and VOILA you are out of the dog house.
With the assessment correspondence audit, you receive a letter from the IRS stating that you have made an error in your tax returns and said mistake has caused you to have taxes due in said amount and please make payment as soon as possible.You have the right to not agree with the IRS and to dispute their findings or just pay what they say you owe and VOILA out of the dog house once more.

Office Audits

That just sounds scary does it not.I mean it gives you the creeps like say a dentist appointment.You know you have to do it but you really just do not want too.Anyway this audit is where the IRS makes you come in and prove your innocence.You will be set up with a time and place to report to an IRS office.When you go be sure to bring all important information along with the paperwork and receipts to back it up with.You are also allowed to bring your attorney or C.P.A.

Field Audits

This is the most common type of audit.IRS agents come to your business and conduct your audit from there.Every piece of information and paperwork within your office is available for the auditor to look at.Nothing is sacred.You do have the right to request the audit be done at another location.You also have the right to have your attorney and or your C.P.A. present.

The most important piece of information I can give you is to be honest.Provide as much documentation and evidence that you can to back up your story.Unless you are trying to hide something,always have a paper trail.

Learn more about this author, Mary Edwards.
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