Federal Tax Matters
An audit almost always starts the same way — a notice in the mail. Whether the IRS wants documents by mail or an in-person examination, our attorneys and CPAs manage the response and represent you throughout.
How it begins
The IRS selects returns for audits based on various factors, including random selection using statistical formulas, comparisons with “norms” for similar returns, or involvement in transactions with other taxpayers under examination. Audits are initiated through mailed notices.
Statistical formulas flag returns that fall outside expected ranges.
Your return is measured against “norms” for similar returns.
Involvement with other taxpayers already under examination.
Two forms
How the IRS conducts the exam depends on what it’s reviewing:
Correspondence audits are typically initiated by computer-generated letters. The IRS will specify the required documentation, submission details, and contact information for questions. After you submit the documentation, the IRS will either accept your return without changes or propose an adjustment. Generally, a taxpayer can request a one-time automatic 30-day extension for mail audits.
For in-person audits, the IRS sends a letter outlining the examined part of your return, required information, the examiner’s contact details, and appointment information. Field audits involve an initial interview covering financial history, business operations, and records not available from other sources. These audits generally last a few hours and may conclude with a request for additional information or a completed report.
Facing a notice?
The way you answer an audit notice shapes the outcome. Our tax attorneys and CPAs handle the correspondence, prepare your documentation, and represent you through field examinations, proposed adjustments, and — if needed — U.S. Tax Court.