Surviving an IRS Business Field Audit
These are the best auditors. They are educated in accounting and usually professional. After five years of auditing, like the office auditors, they are appointed Enrolled Agents without needing to take the exams, as I did.
The audit experience also qualifies them for the CPA exam. These audits are very thorough and involves visits to the client’s home, business, and bank accounts.
Office auditors refer problem large businesses to the outside guys for more intense scrutiny. These auditors like to work out of your business office or the accountant office for the next month.
They have considerable power and can subpoena records from uncooperative business owners. I have found that they especially like to make house calls to rich neighborhoods.
These audits are always long and expensive. Sleeping and headache medication is recommended.
* Phillip B Chute is an Enrolled Agent, tested, licensed, and appointed by the IRS directly. He has prepared or supervised over 25,000 tax returns over 30 years.