eHow launches Android app: Get the best of eHow on the go.

How To

How to Fight a Business Field Audit

Contributor
By eHow Contributing Writer
(0 Ratings)

A business field audit is one of the more time consuming and nerve-wracking audits you may face. Unlike a correspondence or office audit, both of which are handled outside of your home or place of business, a field audit takes place on your own territory. Field audits are more convenient in the sense that you have all of your paperwork on hand, but there are still times when you may need to fight one.

Difficulty: Easy
Instructions

Things You'll Need:

  • Tax lawyer
  1. Step 1

    Record all of your meetings and interactions with the auditor. You must give the IRS and the auditor at least 10 days notice that you wish to record the proceedings, but you are well within your rights to inform them. Note: this is not a request. It is a right.

  2. Step 2

    Retain any and all paperwork that may be pertinent to the audit. This means every receipt, every bank statement and every ticket stub that is a part of your tax return. The more paperwork you retain, the better. Just remember to keep it organized so as to help expedite the process.

  3. Step 3

    Contact the auditor's supervisor. Tell them the nature of your disagreement and ask that they review the audit as it stands. If there are mistakes in the audit they can usually be detected by the supervisor. Just be patient, as the appeal process can take 90 days or more.

  4. Step 4

    Find the Local Taxpayer Advocacy office by state (see Resources below). You can use the Local Taxpayer Advocate office to help represent you or handle your IRS dispute if you don't have all the resources you need at your disposal.

  5. Step 5

    Find all of the forms you need to complete your tax dispute directly from the IRS website (see Resources below). All of the important forms you will need for your audit are readily available there.

Tips & Warnings
  • Consider asking for a meeting with the auditor at the Enrolled Agents' office. This helps you keep the proceedings away from your home or place of business, which helps to keep things moving without causing too many problems.
  • Remember when you fight a business field audit you're going to be incurring costs. If you retain a lawyer for your audit fight, expect to pay for his services unless he is a member of your staff.

Post a Comment

Post a Comment
  • Have you done this? Click here to let us know.
I Did This

Related Ads

Personal Finance
Mark P Cussen, CFP, CMFC,

Meet Mark P Cussen, CFP, CMFC eHow's Personal Finance Expert.

Get Free Personal Finance Newsletters

Copyright © 1999-2009 eHow, Inc. Use of this web site constitutes acceptance of the eHow Terms of Use and Privacy Policy.   en-US Portions of this page are modifications based on work created and shared by Google and used according to terms described in the Creative Commons 3.0 Attribution License.

eHow Personal Finance
eHow_eHow Business and Finance