The correspondence audit is by far the most common of all IRS audits. Mostly utilized for taxpayers without extremely large amounts of income, these types of audits are conducted entirely through the mail, which can sometimes lead to potential issues with expediency. However, the correspondence audit usually only requires the taxpayer to submit some extra verification regarding certain aspects of their tax returns. The IRS may also propose adjustments based on information they’ve received from third-party sources. Either way, they will indicate in their correspondence what aspects of your return require verification or further support, and then you will respond—also through the mail—with the appropriate documentation. Some of the more common aspects of income that can lead to a correspondence audit from the IRS include things like alimony, various itemized deductions, and foreign tax credits. You will want to consult with an experienced tax attorney before submitting your response, however, particularly if you do not have the documentation needed to verify the information on your tax return.
Office Audit
An office audit is when the IRS requests that you actually come to an IRS field office where an auditor will conduct an interview with you to verify certain claims from your tax returns. The IRS will tell you when you need to come to the office, and what supporting documentation you will need to bring with you. Usually, this type of audit will also be meant to examine and verify specific aspects of your return, as opposed to combing through all aspects of your return. Generally, the IRS can complete this type of audit in one day, and you will certainly want to bring a tax attorney with you to advise you and advocate on your behalf, ensuring that you do not give the IRS more information than necessary. An office audit may occur if the results from a correspondence audit were not sufficient, or the IRS may skip directly to this type of audit if there are more complex issues with your return than could be effectively answered by mail.
Field Audit
This is the most severe and serious type of audit, but it is also the least common. In a field audit, the IRS will have an auditor come to your home, place of business, or accountant’s office your tax professional’s office. This audit will be comprehensive, analyzing just about every aspect of your returns. Generally, the IRS will conduct a field audit if there is a serious issue for which they are trying to uncover more evidence, or in situations where there are issues
