Individuals

Auditing process

We accept most tax returns as filed, but to ensure voluntary compliance, we audit a variety of returns each year.

Once a return is assigned to one of our auditors, an Audit Appointment or Correspondence Letter is sent. This letter will ask you to submit information required for the audit. Some audits are conducted entirely through the mail, and other audits may require face to face meetings. 

Audit meetings may occur at your home or office, your representative's office, or one of our locations. If you want a representative present, you need to complete a Tax Information Authorization and Power of Attorney for Representation form.

You'll be asked to provide proof of return amounts and documentation, including but not limited to:

  • Business income and expenses.
  • Receipts for purchases.
  • Bank statements.
  • Transportation logs.
  • Travel, meals, and entertainment receipts.

When the auditor is done reviewing your records, you'll receive a Proposed Auditor's Report if changes are needed. It will explain the proposed changes and the reasoning. Please ask the auditor about anything that is unclear to you.

After the audit, we will:

  • Accept the tax return as filed; or
  • Issue a Notice of Deficiency and Auditor's Report that explains the changes to your return and shows the additional amount you must pay and why; or
  • Issue an Auditor's Report that shows you are entitled to a refund and why.

If we changed your return, the auditor will explain your appeal rights. If you owe additional tax, penalty, or interest, the auditor will provide information on your payment options. You may pay the additional amount at any time during the audit. The auditor may also ask you to amend your return(s) for other tax years for the same issue.