Understanding Office Audits: What Is an Office Audit?
An office audit is a type of IRS examination where taxpayers bring requested documents to a nearby IRS office for review. Unlike mail audits conducted solely via correspondence or field audits performed at your home or business, office audits are held in a controlled IRS location. The IRS conducts these to ensure the accuracy of your tax return, verifying income, expenses, deductions, and credits claimed.
How Do Office Audits Work?
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Notification: The IRS sends a letter explaining the audit scope and listing the documents you must bring. This letter will include instructions on scheduling your appointment.
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Scheduling Your Appointment: You’ll contact the IRS to set a convenient date and time for the audit appointment.
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Document Review: At the appointment, an IRS agent reviews your documents with you. They may ask questions about specifics on your tax return to clarify details.
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Results and Resolution: After reviewing your paperwork, the IRS either accepts your tax return as filed or proposes adjustments that could lead to additional tax owed, penalties, or sometimes refunds.
These audits generally focus on specific claims, such as large charitable contributions, business expenses for the self-employed, or other deductions that stand out.
Who Is Typically Selected for an Office Audit?
The IRS selects returns using data-driven algorithms and random checks. Taxpayers with complex returns, high deductions, self-employment income, or inconsistent information are more likely to be audited. However, anyone filing a tax return can be subject to an office audit.
Tips for Preparing for an IRS Office Audit
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Keep Organized Records Year-Round: Maintain clear records of income, receipts, invoices, mileage logs, and bank statements. Good organization makes audit preparation easier.
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Review the Audit Notice Thoroughly: Understand exactly which documents the IRS requests. Bringing unnecessary documents can complicate the process, while missing requested items can delay resolution.
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Make Copies of All Documents: Bring original documents plus copies for your records and the IRS agent’s use.
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Be Punctual and Professional: Arrive on time and remain calm and cooperative during the audit to facilitate a smoother experience.
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Consider Professional Representation: If the process feels intimidating or complex, hiring a CPA, enrolled agent, or tax attorney can help protect your interests.
Common Mistakes to Avoid
- Arriving unprepared without requested documentation
- Being argumentative or hostile with the IRS agent
- Providing incomplete or inaccurate information
- Ignoring or delaying your response to the audit notice
Frequently Asked Questions About Office Audits
How long do office audits typically last?
Most office audits are concluded in one or two sessions lasting less than an hour each, though complex cases may require additional time.
Can I bring a representative to my audit?
Yes. You may bring a tax professional or attorney to help during the audit or represent you entirely.
What if the IRS determines I owe additional taxes?
You can agree to pay the amount, appeal the decision, or request a payment plan through the IRS, such as using IRS Payment Plans outlined in IRS Publication 9465.
Does an office audit affect my credit score?
No, IRS audits do not impact your credit report or score.
Summary Table: Preparing for an Office Audit
| Step | Advice |
|---|---|
| Receive Audit Notice | Read it carefully and note requested docs |
| Schedule Appointment | Confirm date and time promptly |
| Gather Documents | Organize and bring both originals and copies |
| Attend Audit | Stay calm, answer honestly |
| Follow Up | Review findings and respond as needed |
For more detailed guidance on tax audits and related topics, see our IRS Audit Guide.
Sources:
- IRS.gov – Types of IRS Audits
- IRS.gov – Preparing for Your IRS Audit
- IRS.gov – IRS Payment Plans
- NerdWallet – What to Expect During an IRS Audit
- Investopedia – Office Audit Definition