The IRS performs two types of audits: face-to-face audits and correspondence audits. While face-to-face audits are normally what people think of when they think about IRS audits, correspondence audits are very common.
What’s the Difference?
A face-to-face audit is usually wide in scope, involves large sums of money, and requires you to appear before the IRS. A correspondence audit, on the other hand, is much more limited in scope, involves smaller sums of money, and is done through the mail. If the IRS selects you for a correspondence audit, you will be sent a written request that identifies a specific item or issue on your tax return.
Preparing for a Correspondence Audit
If you’re selected for a correspondence audit, you need to make sure you understand the issue and provide the appropriate documentation to the IRS. The best way to do this is to work with a tax assistance specialist who can help you understand the issue and provide the IRS with enough evidence to satisfy the request. A tax resolution pro will also help you determine what to do if, in fact, you did make a mistake on your return and need to settle with the IRS.
Keep in mind, though, that a correspondence audit can potentially turn into a face-to-face audit. This usually happens when there is no response to the IRS request for documentation. So, if you want to ensure your correspondence audit goes as smoothly as possible, contact one of the tax resolution pros at Pro Tax Resolution today!