What is Types of tax examinations?
In short
The Internal Revenue Service examines returns by correspondence (by mail, usually on a few items), in an office audit at an agency office, or in a field audit at the taxpayer's business.
Key takeaways
- An examination can end with no change, an agreed adjustment or an unagreed adjustment.
- An unagreed result usually brings a 30-day letter offering an administrative appeal.
- Taxpayers can be represented by attorneys, certified public accountants and enrolled agents.
Where it's tested
REG: Internal Revenue Service (IRS) Procedures & Appeals — study notes, a five-minute revision sheet and practice questions.
Practise: 3 questions
Question 1 of 3 · 0 answered
After an examination, a taxpayer receives a 30-day letter proposing a deficiency. What is the main option the letter gives the taxpayer?