What to expect when the IRS audits you

On Behalf of | May 17, 2023 | Blog, White Collar Crimes |

Many people in Arkansas fear becoming the subject of an IRS audit, and while some of these fears may have merit, not every audit leads to major complications or legal trouble. If you find out the IRS plans to audit you, it may help ease your fears to know what to expect along the way.

Per U.S. News and World Reports, while some audits happen totally at random, most occur because of something a taxpayer did while filing taxes. For example, your chances of having the IRS audit you increase if you fail to report all of your income or take tax deductions for which you are ineligible, among similar errors. If the service does decide to audit you, it may conduct one of the following three types of audits.

The correspondence audit

Most IRS audits take place completely by mail. In a correspondence audit, the IRS may ask you to submit additional documentation backing up why you filed your taxes in the manner you did.

The office audit

An office audit is a bit more intensive and involves you meeting a representative from the IRS at an IRS office within a reasonable distance from your home. Most office audits take between about two and four hours, although there may be some variation.

The field audit

Field audits are the most daunting and intensive of the audit types. These audits may take a day or longer and often involve IRS representatives coming to your place of business.

No matter what type of audit you have, try not to panic. Also, while it is important to answer the questions the IRS asks of you, it may prove helpful to avoid divulging too much information or answering questions the IRS does not directly ask.