Question

According to the IRS:

"An IRS Audit is a review of an organizations or individuals accounts and financial information. Another way to look at an audit is as a discussion and review of the individuals or businesss financial situation to ensure taxpayers are complying with the tax laws and reporting a substantially correct amount of tax."

Please describe the IRS audit process.

Answer 1

IRS audit or simply known as federal tax audit is the detailed review of the income tax return to ascertain its accuracy and correctness. This is the usual process in which authorities wants to understand the basis of taxes on the basis of financial informations. There can be three types of IRS audit process.

First one is correspondence audit in which assesses are asked to submit details online. Minor information on some specific tax information are asked from the assesses or may be upload initialed information.

Office audits are IRS audits in which assesses are asked to visit the authorities premises. Detailed audit of the documents are done by the officers of IRS to ascertain whether details mentioned in the income tax return is correct or not. Statements of the asseesses are recorded by the authorities.

And last one is field audit in which the officers visit the on-site location to understand and interview the asseesses. Tax payer needs to share all the financial or other relevant information to the IRS department.

IRS audit process can be completed by any of the above processes mentioned.