There are basically three types of audits. The most popular, from the IRS' point of view is the “Correspondence Audit.” These audits come about because the IRS computers can't find income the folks who allegedly paid you reported to them that they did on W2s and 1099s. The IRS is now expanding these type of audits to question deductions such as mortgage interest and contributions.

An “Office Audit” is usually reserved for small businesses who report a loss from a business or one of the other “red flag” issues for which they would like to take a closer look. You can tell if it's an “Office Audit” because they ask you to go see them and take your receipts for deductions with you to show them.

A “Field Audit” is a really serious audit of a business and is usually done at the place of the business owner or their tax representative. We're very good at these but it helps a lot for you to be in our local area.

While we can be very effective at handling your correspondence audits, we recommend you retain the services of a qualified, local CPA or Enrolled Agent to represent you for your field and Office Audits.