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.
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Audit----what To Expect?
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.
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