Before an IRS Audit
There are many steps to the process of an
IRS audit. Many people consider the first step of an IRS audit
to be when they receive a letter audit or a correspondence
audit. When the IRS sends out a letter stating that the
taxpayer made some mistakes on his or her tax return but does
not assess any more taxes or revises taxes owed, many people
does not consider this step part of the IRS audit process.
The start of the IRS audit process
When a tax return is filed with the IRS, by
mail or e-filed, it is checked to a certain extent.
The first check at the IRS
is for completeness. If a tax return is filed
with any missing information such as Social
Security number, signatures, date of birth,
etc., then the IRS will not apply the tax payer
that the tax return is incomplete and how it
taxpayer can correct the mistakes.
Many taxpayers file their tax returns with
missing tax forms or schedules and there will be receiving at
least a letter from the IRS. The letter from the IRS that you
are going to receive from this type of mistakes is not bad and
will contain information you need to make everything
Friendly Letter from the IRS
When the mistakes on a tax return are just
about missing information or missing tax forms, then the
IRS will send a borderline friendly or nice letter to the
taxpayer. The letter will not talk about any taxes owed.
That is the next step done by a computer program.
Multiple Letters from the IRS
Some taxpayers receive a letter from the IRS
about missing information or tax forms or schedules and
then they made corrections. Then the computer program catches
more mistakes and inconsistencies. Then the IRS sends a letter
audit to take care of the tax calculations. See Letter audit for the
process involved when the IRS receives a
complete tax return.