Investing Answers Building and Protecting Your Wealth through Education Publisher of The Next Banks That Could Fail
Investing Answers Building and Protecting Your Wealth through Education Publisher of The Next Banks That Could Fail

Office Audit

What it is:

An office audit is a type of audit by the IRS.

How it works (Example):

For example, let's say John Doe gets a letter from the IRS saying that he is being audited. The audit is an office audit, meaning that the IRS likely will review John's paperwork from its offices and not physically arrive at his home to pore over his records and interview him.

Why it Matters:

IRS audits exist to ensure that taxpayers are paying the required amount of tax. Audits can be random or intentional; in either case the taxpayer is first notified that the audit will occur. An office audit can occur almost entirely by mail, which is often less stressful for the taxpayer. IRS publication 556 gives details of the auditing process.

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