(Third in a three-part series on IRS audits)
We don't want to sugarcoat things: Getting hit with an IRS "field audit" is a worst-case scenario and a cause for genuine concern. The process is expensive, time-consuming and requires a more comprehensive defense strategy than the other two types of audits we've discussed in our audit series ("correspondence audits" handled through the mail and "office audits" performed at an IRS office).
With a field audit, IRS auditors come to your business or home, wherever you keep your books and records. Field audits are used mainly with large or complex business returns or when the IRS strongly suspects a person or business failed to report significant amounts of income.
Advice: Stay calm. If auditors smell fear, they'll suspect you've got something big to hide. Approach the field audit in a businesslike fashion with a detached demeanor.
Since both field audits and office ...(register to read more)
- How to Fire an Employee the Legal Way: 6 Termination Guidelines
- Small Business Tax Deduction Strategies
- Navigate tricky tax waters for boat, car sales to charity
- IRS releases new 2012 Data Book
- EEOC settles race case over training discrimination
- Your dollars at risk: 6 ways to protect yourself from personal liability