How IRS Audits Work

The IRS can audit you by mail, in the IRS offices, in your office, or in your home. The location of your audit is a good indication of the severity of the audit. Typically, correspondence audits are for missing documents in your tax return the IRS computers have attempted to find. These usually include W-2′s and 1099 income items or interest expense items. This type of audit can be handled through the mail with the correct documentation.

IRS Office Audit

The IRS office audit is usually with a Tax Examiner who will request numerous documents and explanations of various deductions. This type of audit may also require you to produce all bank records for a period of time so the IRS can check for unreported income.

IRS Home Audit

The IRS audit scheduled for your home or office should be taken more seriously due to the fact the IRS Auditor is a Revenue Agent. Revenue Agents receive more training and auditing techniques than a typical Tax Examiner.

All IRS audits should be taken seriously because they often lead to an audit of other tax years and other tax deductions not originally stated in the audit letter. According to the Fiscal Year 2011 Enforcement and Service Results the IRS collected the following amounts of enforcement revenue:

  • 2001 – $24.3 billion
  • 2006 – $28.2 billion
  • 2011 – $31.1 billion

Utah residents are not immune to this massive increase in collections or “enforcement revenue.” Whether you live in a larger city like Salt Lake City or a smaller city, whether you make $500,000 a year or $25,000 a year, the IRS will come and collect what they feel is theirs. Wage garnishments, levies, and much more could follow what may seem like a simple audit. Are you willing to risk your assets and income in an audit? When you need help dealing with the IRS turn to a local and trusted source that has been in the business to garner the experience you need, instead of a national firm that you’ll never meet, nor do they have the true experience in working against the IRS. Michelle Turpin P.C. has that experience and reputation as the premier Utah Tax attorney you can turn to for help.