IRS Tax Audit/Examination

CPAs can act as the taxpayer’s authorized representative under Circular 230. They communicate directly with the IRS Revenue Agent, respond to inquiries, and manage the flow of information. This shields the client from direct questioning and helps maintain a professional tone throughout the audit. Internal Revenue Agents of the IRS are in charge of conducting the most complex audits. Luis Ramirez CPA has vast hands-on practice in IRS examinations of small businesses. Call for a free consultation.

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Luis Ramirez CPA. IRS Audits/Examinations

Types of Audits

The IRS conducts several types of audits, each with varying levels of scrutiny and taxpayer interaction. Here's a breakdown of the main audit types and what they typically involve:

Correspondence

Conducted by mail; IRS requests documentation to verify specific items.
Limited to one or two issues (e.g., deductions, credits).
Audit conducted by IRS Tax Compliance Officers (TCO's)
Level of complexity: low to moderate.

Office Audits

In-person interview at an IRS office.
Broader review of return items.
Audit conducted by TCO's or Internal Revenue Agents (RA's)
Level of complexity: Moderate.

Field Audits

IRS visits taxpayer’s home, business, or representative’s office.
Comprehensive review of financial records.
Audit conducted by Internal Revenue Agents (RA's).
Level of complexity: Moderate to complex.
Generally conducted by the Small Business & Self-Employed Division (SBSE) or Large Business & International Division (LB&I) of the IRS.

IRS Tax Audit/Examination

Luis Ramirez CPA. IRS Audits/Examinations

Types of Audits

Correspondence

Office Audits

Field Audits

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