IRS Audit Process: Mostly Conducted by Mail


Most IRS audits are conducted by mail.


Correspondence audits

Audits  done by mail are called correspondence audits (commonly known as “corr audits”). What's frustrating is that in corr audits, you do not have a Revenue Agent assigned to your case. Instead, every time you call the number on these notices, you’ll need to explain your situation to a completely different person. To say this is maddening is a massive understatement.


Do not be fooled… "corr audits" are serious business

Because of the lack of the intimidation factor of being served face-to-face, many taxpayers feel contact from the IRS by mail is not a big deal. Corr audits can be misleading since the outcome can be even worse than a traditional field audit.


These corr audits begin with a series of computer-generated notices being sent to your last known mailing address. First, the IRS computers will spit out a letter asking you for more information about your return, or — if you didn’t file for the year at issue — the letter will ask you to submit a return. Eventually, if you don’t respond, these computers will spit out another letter telling you that the IRS plans on assessing taxes against you. If you do nothing after receiving this last letter (the “Notice of Deficiency”), the IRS will complete the assessment and it will begin to collect on your newly-created, over-inflated, and fully-enforceable debt.


A tax assessment has the full force of a court order. Not only that, but the IRS can get from point A (inquiry) to point B (assessment) without a human ever taking a full look at your situation. It’s like a bad movie where armed robots have taken over the earth, but instead of using machine guns or tanks to strip us of our human rights, the IRS robots use laser printers and the US Postal Service.


Now that the IRS has assessed a tax against you, it is only a matter of time before the IRS starts reaching into your bank accounts, garnishing your wages, and putting liens on everything you own. This doesn’t mean you’ve run out of options, but it does mean you have to play by the IRS’s rules in order to resolve the problem.


Once a tax is assessed, it is assumed that the liability (almost always determined by a computer in corr audits) is correct. Whether or not the IRS will agree to reduce your liability after an assessment is made is up to their discretion. But, once again, the IRS is the one making all the rules. So, once an assessment is complete, you’ve lost your right to go to tax court and contest the liability. Unfortunately, in a situation like this, your options are limited, but that doesn't mean they don't exist.


If you have a tax issue or are dealing with an audit and need assistance, contact us. We can help. Call us at 888-727-8796 or email info@irsmedic.com.