What does an IRS audit look like?

While and IRS audit can be intimidating and the results will vary organization to organization, the full process is spelled out in IRS Publication 556. The basic steps are as follows:

• The IRS will contact you directly
• Though the IRS decides when, where, and how the examination occurs (i.e., via mail or in-person), you do get to provide input
• You can appoint a representative (i.e., your attorney or CPA) to handle the audit with or for you
• Provide documentation in support of your return(s)
• The IRS informs you of any proposed changes
• If you agree, sign and pay additional taxes, as needed
• If you disagree, you can appeal and the IRS will send you:
  • A letter notifying you of your right to appeal
  • An explanation of proposed changes
  • An agreement or waiver form
  • A copy of IRS Publication 5 explaining appeal rights

• Sign and return to agree with the proposed changes
• If you still don’t agree, appeal or escalate to federal court

Original content by HR Ministry Solutions. This information is provided with the understanding that Payroll Partners is not rendering legal, human resources, or other professional advice or service. Professional advice on specific issues should be sought from a lawyer, HR consultant or other professional.