Blog

Top three things that happen in an audit is you get your notice of audit, and that notice of audit requires you to provide a lot of information within a very short time period. Second step is all that information is gathered and organized and it’s provided to the agent. Then the agent is able to kind of sit on it and at their leisure. Review the information that was sent, and then during that process, they’ll either consider it sufficient or they’re gonna come back and they’re gonna say, we need more information.

And they have questions. Once the audit is concluded, they’ll send you either a “no change,” meaning they made no changes to your return, they’re accepting the original return.

There’s gonna be a “substantial change,” usually an increase in tax, sometimes a decrease in tax, and I have seen them several times. They increase or decrease the tax, and then other times they give you a response and you have the opportunity to appeal. Usually that’s with a large balance due, but those are the, the three basic stages and there’s a lot of little things that happen in between there.