An IRS Audit is a review/examination of an organization’s or individual’s accounts and financial information to ensure information is reported correctly according to the tax laws and to verify the reported amount of tax is correct. Typically, a tax return is chosen for an audit if IRS observes something is out of the ordinary.
There are three main types of IRS Audits:
- Mail Audit
- Office Audit
- Field Audit
It is usually nerve-wracking for a business owner and the management team if their organization gets selected for an IRS Audit. Regardless of whether the charges were documented precisely, it may create an alarming situation within the organization. An IRS Audit can be a tedious and complex process that distracts leadership from managing their company.
