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Mount Laurel, NJ: IRS Audits: Commonly Asked Questions

By Fanta Kaba

Industry Observer with OnPoint Resolution LLC

July 13, 2022 09:06 AM

Being that I represent taxpayers in Mount Laurel and the rest of New Jersey, when it comes to IRS Audits some of the commonly asked questions are as followed :

Why am I being selected for an audit?
Just because you have been selected for an audit does not mean you have done anything wrong. The IRS can do random selection and computer screening, as sometimes, as sometimes returns are selected based solely on a statistical formula. The IRS compares your return against “norms” for similar returns that it develops from audits of a statistically valid random sample of returns, as part of the National Research Program the IRS conducts.
How will you be notified?
If the IRS selects your return for examination it will inform you by mail. It won’t initiate an audit by telephone or email.
How will the IRS conduct my audit?
The IRS manages audits either by mail or through an in-person interview to review to review your records. The interview may be at an IRS office (office audit) or at the taxpayer’s home, place of business, or accountant’s office (field audit) Remember, you will be contacted initially by mail. The IRS will provide all contact information and instructions in the letter you will receive.
Should I have a tax professional represent me during the Examination? Yes. It always advisable to have a professional who has experience and focuses their practice on taxpayer representation handle the exam for you. This professional can manage the process, deal with the examiner, and provide insight and advice on how to present the information.
What do you need to provide?
The IRS will provide you with a written request for the specific documents it wants to see. The law requires you to keep all records you used to prepare your tax return- for at least three years from the date the tax return was filed.
How do I know if the IRS received my response?
For any delivery service you may use, always request confirmation that the IRS has received it. For example, If use the US portal Service, you can request one of their additional services to ensure delivery confirmation.
What if I need additional time to respond?
Send in a written request to whomever sent the notice requesting additional time. The IRS generally will allow an additional 30-days to respond.