Tax Questions

What are the types of IRS audits?


There are a few types of IRS audits. Most of the IRS audits are not as bad as people make them out to be. The three types of IRS audits are: correspondence audit, office audit and field audit.

IRS Audit Type 1: Correspondence IRS audit

Once a tax return is selected for an IRS audit, the taxpayer is notified. If the issue involved is minor, the matter often can be resolved by a correspondence audit. In a correspondence audit, the IRS sends a letter to the taxpayer asking for verifications of certain items on the tax return. You never have to meet with the IRS in a correspondence audit.


IRS Audit Type 2: office IRS audit

The second best type of IRS audit to have is the office audit. An office audit usually is restricted in scope  and is conducted in an IRS facility. A taxpayer being audited will walk into an IRS office where the audit takes place with documents needed.

The IRS audit agent look through the documents and calculate the taxes owed then the audit is over. Not every office audit results in more taxes to the IRS. Some results of the office audit are no change or tax refunds to the taxpayers.


IRS Audit Type 3: Field IRS Audit

The third type of IRS audit is field audit. Field IRS audit involves an examination of many items reported on the tax return. Field IRS audits are conducted on the premises of the taxpayer or his or her representative.