What to expect as the subject of an IRS audit

On Behalf of | Jan 18, 2022 | White Collar Crime

Many Illinois residents question whether they are doing everything correctly when filing their taxes, and with good reason. Tax rules and laws change from year to year, and there are many areas on a tax return that may lead to confusion. While, in some cases, the IRS may catch minor errors and have you make corrections as needed, larger errors or omissions may trigger an audit.

Per U.S. News and World Report, while errors and omissions may trigger a tax audit, some people wind up having the IRS audit them completely at random, and not because they submitted anything questionable. However, if the IRS does decide to audit you, you may face one of the following audit types.

The correspondence audit

A correspondence, or mail, audit, is arguably the least daunting type. It typically takes place only by mail and may involve you turning over additional documentation or evidence of why you filed your taxes in the manner you did.

The office audit

An office audit involves you meeting with an IRS representative to discuss your tax return and why you submitted the information you did – or did not. This type of audit often takes between two and four hours to complete.

The field audit

Field audits tend to be more comprehensive than the other two audit types. In this type of audit, IRS representatives may come to your home, your business or both to learn more about your income, finances and tax obligations.

Correspondence audits may not require legal assistance. However, many who face office or field audits find that having legal representation helps them navigate the audit better and ensure they cover all necessary bases.