The Federal Audit Process
Taxpayers who receive audit notices are rarely familiar with how the process works.
Generally, audits start with the issuance of an Audit Notice, which tells you what years are under audits.
The auditor will then set up a time for the audit, which may be conducted at the auditor’s office, the taxpayer’s office/residence or the taxpayer’s representative’s office; if the taxpayer under audit either owns or is a business, the auditor will also schedule a visit to the business.
After the auditor has completed the audit – which may or may not be the same day or week, depending upon whether or not more information is needed – the auditor will prepare an audit report, and issue the report to the taxpayer for their review.
After the taxpayer’s review, and assuming the taxpayer agrees with the changes, the auditor will issue a Notice of Proposed Adjustment for any changes proposed to the return.
The taxpayer will have several points during this period at which to object to the IRS’ changes.
If you’ve received a federal audit notice and would like to know what to expect, contact our office at (818) 480-3280 to set up an appointment. We’re here to help you through this process.