Discussion:Unusual Audit Initiation?
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Discussion Forum Index --> Tax Questions --> Unusual Audit Initiation?
| 20 February 2008 | |
| I've recently had someone tell me that they were "called" by the IRS (rather then notified in writing) and advised of an audit to be conducted in their home. This person does not run a business out of their home or claim any business use of the home on their tax return.
Twenty-one years and 8000 returns has produced only a half dozen audits - so I can't say that I'm terribly experienced with that part of the tax business. Perhaps I'm a novice, but does anyone else find the field audit, and the notice by phone a bit unusual? | |
| 20 February 2008 | |
| I have never heard of a phone initiated by phone. Beware. | |
| 20 February 2008 | |
| I have never heard of verbal initiation. Sounds like a scam to me. | |
| 20 February 2008 | |
| Thanks for the replies ... I thought the same ... that it sounded suspicious.
Im wondering whether I should call the PD or IRS Fraud? | |
| 20 February 2008 | |
| sounds suspicious- was there any additional information provided, date & time, agent name & #? A way to reach the "agent"? | |
| 20 February 2008 | |
| If I remember correctly, D&T had one like this last year where they called the client's house. Perhaps others will remember. I think it turned out the IRS had called the home. | |
| 20 February 2008 | |
| If you can locate the relevant IRM part on irs.gov, I'll bet you will find that for field examinations, telephone contact is to be attempted, followed up by letter. The rationale is that IRS to almost always referred to a representative, making the act of scheduling an exam with the t/p a waste of time. What's unusual is a field exam w/o any business somewhere, though. | |
| 20 February 2008 | |
| A phone and badge number were given. I did not want to tip anything, and did not call.
Have just spoken with the IRS who stated that audits are always advised in writing. Who knows ... maybe it's an authentic agent with a wild hair. On the other hand, best to be prudent and I've advised the client to call the local PD. | |
| 20 February 2008 | |
| Who in IRS said they are always advised in writing? Don't call that function again.
IRM 4.10.2.7.3.1 (08-01-2007) Field examination cases should be scheduled using telephone contact. The advantages of using a telephone contact to schedule field examination cases are: (etc., etc.) | |
Death&Taxes (talk|edits) said: | 20 February 2008 |
| Was not an audit, Crow. But I have seen field auditors call the client and let them know a letter would be forthcoming. In fact my last corporate audit began that way in 1997....she referred him to me and said she would sign a POA, he called and told me where to send it and we had the audit. | |
Dsiclients (talk|edits) said: | 20 February 2008 |
| You said a phone number and badge number were given. I would NOT call the phone number, but I would call theIRS and have them verify the badge number and name of the caller. I don't know who you would call, but someone else on this board might know. | |
| 20 February 2008 | |
| If you have the POA -why not call the practioner hotline? | |
Bottom Line (talk|edits) said: | 20 February 2008 |
| Am I the only one that thinks that a client would have a heart attack if they got a phone call saying "Hi, I'm Joe Smith and I am an agent for the Internal Revenue Service. I'm calling to schedule an audit."? | |
| February 20, 2008 | |
| With telephone marketing, computer-generated calls and fraud the way they are these days, I'm surprised the IRS would use a telephone call as an initial contact regarding an audit. | |
| 20 February 2008 | |
| I would agree that people are growing more wary of cold calls from anybody unfamiliar, but it is followed up by a letter and other documents. To the contrary, it is easily possible any given IRS local office chooses to ignore what the manual says.
One problem with a letter as initial contact is the same as any computer-printed letter these days which is just plain text, using ordinary PC equipment and weak grammar. It does not look very official at all. I rec'd one from a major bank HQ function over what they thought was an account problem, and it looked awful. Ended up just visiting the local branch, who should have called me in the first place. Modern times can annoy us. | |
Outwesttax (talk|edits) said: | 20 February 2008 |
| Assuming this was legit, I'd be okay with the IRS coming out. I've got a audit next month that will require me to go 120 miles one way to meet. We have a collection group in town, but the audits are done in the office in Boise. Could be worse, they also do eastern Idaho, so those folks can choose 5 hours each way to Boise or 4 hours each way to Salt Lake for their office audit.
Yeah the IRS manual says the exam should be conducted at the nearest office, but that means the nearest office a revenue agent is regularly posted. Oh yeah, note the date of 3/11. I've got a lot of time right now also. | |
| 20 February 2008 | |
| I once had a RA show up at a client's business office unannounced. I advised the client to tell the Agent he did not receive an audit notice letter and ask him to come back with one. The Agent returned with one the next day. Turned out to be a no change audit. | |
