Types of audits
- Correspondence audits are handled entirely by mail and usually ask about a few specific items. They're by far the most common.
- Office audits take place at an IRS office and typically cover more issues.
- Field audits take place at your home or business and are usually more comprehensive.
How far back can the IRS go?
Generally three years from the date you filed. That extends to six years if you left out more than 25% of your income, and there's no limit if a return was never filed or was fraudulent.
What we do
- Review the audit letter and the return to understand exactly what's being questioned
- Gather and organize documentation that supports your return
- Communicate with the examiner on your behalf under a power of attorney
- Respond to proposed adjustments, and pursue an appeal if we disagree with the result
What not to do
- Don't ignore the letter or miss the response deadline.
- Don't send original documents, and don't send more than what's requested.
- Don't guess. A wrong answer is harder to fix than no answer.
Frequently asked questions
Do I have to meet with the IRS auditor myself?
Usually not. With a signed power of attorney, we can communicate and meet with the IRS on your behalf.
Is a CP2000 notice an audit?
Not exactly. A CP2000 is an automated proposal to change your return because income reported to the IRS doesn't match it. It still requires a response by the deadline, and it's often wrong or incomplete, especially with crypto.
What if I disagree with the audit result?
You generally have the right to request a conference with the IRS Independent Office of Appeals, and ultimately to go to Tax Court.
Do you handle state audits?
Yes, including New Jersey and New York income, sales tax and residency questions.