IRS office audit: what to expect at the interview

How it starts

An office audit starts with a letter in the mail, not a phone call. The IRS describes it as an in-person interview at an IRS office. The letter names the items under review, proposes a time and place, and lists the documents to bring.

Suppose you are a salaried employee who claimed unreimbursed job expenses and a large charitable gift. The letter might ask you to bring statements, receipts and acknowledgments for those two items only. Read the letter for the date, the office address and the examiner's contact information.

Scheduling and rescheduling

For in-person audits the IRS audits page says to contact the auditor or the auditor's manager if you need to change something. If you cannot make the appointment or need more time to gather records, call before the appointment, not after, and follow up in writing.

Keep a short log of every contact: who you spoke with, when, and what was agreed. If an agreement changes your response date, ask for it in writing.

Records to bring

Bring only what the letter asks for, organized by item. Bring copies you are comfortable leaving with the examiner, and keep the originals with you.

• A folder per item named in the letter, with a one-page index
• Bank and card statements that show the payments
• Receipts, invoices or written acknowledgments
• A brief written timeline if an item involves several events

Your rights during the interview

Federal law says that if you clearly state you want to consult an attorney, CPA, enrolled agent or other authorized representative, the IRS must suspend the interview, with an exception for summons-related interviews. A representative with a written power of attorney may attend in your place. IRS Publication 556 mentions Form 2848 for that authorization.

You may also ask in advance to audio-record an in-person interview. You pay for and supply the equipment, and the IRS may record only with prior notice to you. Publication 556 describes asking in writing with advance notice; because that publication is older, confirm the current advance-notice period with the examiner.

Repeat examinations

If the same items were examined in either of the two prior years and no change was proposed, tell the examiner. Publication 556 says to contact the IRS and ask whether the exam should be discontinued. Bring the earlier closing letter if you have it.

Mistakes to avoid

The most common problems are small ones: arriving without a document the letter named, volunteering information about items the letter did not mention, and guessing at answers. It is fine to say you will find the record and send it later.

Do not hand over your only copy of anything. Do not sign a form you have not read.

After the interview

The examiner may close the audit with no change, propose changes, or ask for more documents. If you receive proposed changes, read the response instructions and date carefully. IRS Audit Defense Pro is software that helps you organize your facts and draft a response letter you review and send yourself; it is not a law firm, CPA or enrolled agent. After a meeting, a follow-up letter that restates what you agreed to send is a practical use of it.

Frequently asked questions

Sources

• IRS: IRS audits
• 26 U.S.C. 7521: Procedures involving taxpayer interviews
• IRS Publication 556: Examination of Returns, Appeal Rights, and Claims for Refund

Related guides

• Correspondence audit: how an IRS audit by mail worksA correspondence audit is an IRS audit handled entirely by mail.
• IRS field audit: what happens when the auditor comes to youA field audit is an in-person IRS examination held at your home, your business, or your representative's office.
• Handling an IRS Notice Yourself or Hiring a ProfessionalYou can respond to many IRS notices yourself.
• Form 2848 vs Form 8821: Represent or Just View?Form 2848 is a power of attorney that lets the person you name represent you before the IRS and receive your tax information, within the scope you list.
• The IRS Taxpayer Bill of Rights, in Plain EnglishThe Taxpayer Bill of Rights lists ten rights, including the right to be informed, to challenge the IRS's position and be heard, to appeal to an independent forum, and to retain representation.
• How to appeal the results of an IRS auditIf you disagree with audit findings, respond to the letter that proposes the changes by the date it gives, which is generally 30 days.