Ideally, only a small percentage of taxpaying Americans need to worry about the IRS auditing their tax returns. It can be unsettling to find out that you are the subject of an audit. It may cause stress and anxiety, and for good reason.
You may find some relief in the knowledge that most audits may not require IRS representatives to suddenly show up at your house. Contrary to popular belief, majority of IRS-initiated audits take place through the mail. You may never actually have someone show up at your house for an audit.
Different types of audits
The IRS may perform an audit using one of the following methods listed below:
- · Audit by mail: About three-quarters of all IRS audits take place via mail, and most of the time nobody from the IRS pays you a visit. If you undergo this type of audit, you may need to present documents that back up your claims when you were filing your taxes.
- · In-office audit: As the name suggests, this type of audit requires you to attend a meeting at a local IRS office. While this may sound intimidating, it allows you to present the documents that the IRS requires in person, thus giving you the perfect opportunity to answer questions and clarify any concerns straightaway. You may opt to have an accountant or an attorney present for this type of audit.
- · Field audit: This is the type of audit that most taxpayers fear most, as involves a visit from an IRS agent to your residence to assess your situation and ensure that everything on your report was accurate.
Suddenly becoming the subject of an IRS audit can be stressful and may induce anxiety. If you ever face this situation, it may be a good idea for you to remain calm until you have all the information, and to be ready with all the documents they may require. You may also want to ensure that everything you report is accurate to prevent future troubles.
