Audit----what To Expect?

[SueBaby]

I transmitted my clients return on the 5th she got audit on the 15th. She said the IRS called her and told her to get receipts that what was on her return. They said they would not come to her house.

Okay what does that mean? To mail in receipts (if they have them) or tell them on the phone? Never had my client get audit don't know what to expect. Last night another one was audit over miles from a different state----she has nothing to back it up.

This people tell me or have it on paper numbers and that is what I work with and now they are saying they didn't say that number or didn't work with that figure. What I am to do to cover myself on what they said? I don't MAKE figure up in my head.

[bertrans]

Audit

You or your client will receive a letter from the IRS; from what you have said, the audit appears to be a correspondence audit: i.e., not an office audit. NOTE: are you certain the IRS person said 'they wouldn't be coming to their home'???? Vey unusual: home 'visits' involve full fledged field audits. Depending on the issue(s) and the IRS letter, if it comes (another note: the IRS seldom makes a first contact by phone; I repeat: seldom), the receipts are mailed in; use copies.

On your last point: if a return is selected for examination, AND the IRS asks for documentation of the examined issues AND the TP (or the preparer for the TP) is unable to provide the requested documentation, THEN the examined items (deductions, credits, exemptions, etc.) are disallowed.

Did you rely on 'figures' provided to you by the TP?
Were those figures, in your professional judgment, reasonable - given their nature, TP's occupation and so forth?

These questions can only be answered by you - which DOESN'T mean the IRS is going to haul you in. Probably.

[JohnH]

The IRS called her?

Better be careful here. Was the call the initial contact? If so, it is probably a scam. I hope she didn't reveal any personal info in the phone call.

If she gets a phone call, she should tell them to put it in writing (a letter, not an email) and bring the letter to you.

[thomtax]

My first thought also

I would want to see the mail. With so many scams going on, I don't trust any phone calls unless they can provide some specific information and will not give out personal information.

LT

[SueBaby]

You or your client will receive a letter from the IRS; from what you have said, the audit appears to be a correspondence audit: i.e., not an office audit. NOTE: are you certain the IRS person said 'they wouldn't be coming to their home'???? Vey unusual: home 'visits' involve full fledged field audits. Depending on the issue(s) and the IRS letter, if it comes (another note: the IRS seldom makes a first contact by phone; I repeat: seldom), the receipts are mailed in; use copies.

On your last point: if a return is selected for examination, AND the IRS asks for documentation of the examined issues AND the TP (or the preparer for the TP) is unable to provide the requested documentation, THEN the examined items (deductions, credits, exemptions, etc.) are disallowed.

Did you rely on 'figures' provided to you by the TP?
Were those figures, in your professional judgment, reasonable - given their nature, TP's occupation and so forth?


These questions can only be answered by you - which DOESN'T mean the IRS is going to haul you in. Probably.

To me that was a quick audit within 10 days. My client said that the IRS told her it was a random phone audit and not to come to her house for them to call back in 30 days for proof. Have you heard of such?

[taxmandan]

No way the IRS would call about an audit on a return that had just been filed, not that soon. She should not answer any questions on the phone, and get the callers IRS ID number and name so it can be verified with the IRS.

[taxladyea]

40 years of experience tell me FAKE FAKE FAKE

Have never had IRS call on the INITIAL contact. Just is not done! An audit within 5 days
no way! IRS should be alerted. If they did ( and I do not believe for one minute they did) some record is supposed to exist.

Boy are you having lots of fun this tax season! Well 10 minute lunch break is over back to grindstone.

Have a great one!

[Zee]

Something is wrong. No audit is started 10-15 days after receipt of an e-filed tax return. Most occur a year or two after the return is filed.

Why don't you contact the local IRS office and ask them about this call? Get the phone number on the internet, not from the communication your client received.

I strongly suspect this is a scam of some kind. The IRS has recently warned of many.

[BOB W]

I can only repeat what others have said>>>>> this is a scam.... not an audit..........

[bertrans]

To me that was a quick audit within 10 days. My client said that the IRS told her it was a random phone audit and not to come to her house for them to call back in 30 days for proof. Have you heard of such?

I have never heard of that, as in at no time whatsoever. I share the concerns of the other posters.

[geekgirldany]

Sounds like one to me also. I've told several customers about these scams. To not give out personal information to any that calls you even if they say it is the IRS.

[David1980]

Not only does it sound like a scam, but this is incredibly easy to confirm.

Call the IRS/have her call the IRS and confirm it. It would be near impossible for a scammer to intercept a call to the IRS in order to keep a scam alive, and if the IRS says they know nothing about this well, then there's no IRS audit.

(Note, that this could also be the taxpayer trying to scam you. Claim they were auditted and had to pay $X amount of money because you made up a number and demand you pay them that amount. Happens all the time that a taxpayer remembers seeing some other refund amount and then wants you to give them the difference between the real amount and what they remember. Hopefully preparers are smart enough to never give in on that...)

[myerstaxes]

From My Personal IRS Experience

Okay, from my 31 years at the IRS, I do know that the only time a person would hear from the IRS soon after filing is if the IRS is going to "freeze" their refund, due to EIC or some other project they are running...There is also fraud units out there that flag a return and put a CID hold/freeze on the refund...Next, there is a dependent that has been claimed by someone else and your client was last to claim them...There could be a few other things that I cannot remember at present...
Now, these contacts would normally come from the service center, and via mail and not by phone...

Lastly, it no longer takes IRS two years to get to a return, I just finished a 2006 audit with a Revenue Agent that was begun in October 2007...And when I managed Revenue Agents back in the 90's, the preferred method of first contact was by phone, followed by an official letter...

[Bonnie]

This is not the time of year the IRS initiates audits. They are too busy right now just trying to get through everyone filing. They don't even have information uploaded into their system to begin an audit on 2007 tax returns. Audits for the 2007 tax year won't begin until later this year. I agree with others. There is a scam going around and usually the called asks you to verify your Social Security number and other information and in the process the caller is just stealing your info. Be careful of this type of a phone call. Not the way IRS does business.

[JohnH]

Had a situation a couple of years ago

About 2 years ago in late Jan our church financial secretary called to say that someone from IRS had called asking for a fax copy of a just-issued W-2 for one of the Day Care employees. They had left a phone number so I called them back.

The woman I spoke with said she was working on an E-filing fraud project and demanded that we fax a copy of the W-2. I replied that her call seemed reasonable and that we wanted to cooperate if the request was legitimate, but before I'd release any info I needed a written request or else a personal visit from someone with proper ID.

She called back two days later, still demanding the info. This time I refused to fax it and explained that in the intervening period there had been sufficient time for a letter to reach us, so we were declining to cooperate unless we had proper documentation. I wasn't interested in interfering with a legitimate investigation, but there was no way I was going to fax somebody's W-2 to anyone until I had something in my posession that I felt would protect me.

We never heard anything else from them and I've always wondered what that was all about. Maybe they wanted to compare the paper copy to an e-filed return, maybe they got sufficient info from another employer to complete their project, or maybe it was all a scam. In any case it was wierd.