Office Audit

DEFINITION of 'Office Audit'

An examination of a taxpayer's records by the Internal Revenue Service to ensure the taxpayer's compliance with tax laws. In an office audit, the IRS interviews the taxpayer and inspects the taxpayer's records at an IRS office. The purpose of an office audit is to make sure the taxpayer is accurately reporting income and paying the lawful amount of tax.

BREAKING DOWN 'Office Audit'

The IRS may select a tax return for audit at random as part of routine compliance efforts; a tax return may also be selected because of suspected errors based on mismatched documents or the examination of related taxpayers' returns. Taxpayers are notified of audits by mail, and the audit itself may be conducted by mail, at an IRS office, at a taxpayer's home or business, or at an accountant's office. IRS Publication 556 provides details on the office audit process.

RELATED TERMS
  1. Field Audit

    An audit is an investigation conducted by the Internal Revenue ...
  2. Correspondence Audit

    Tax audits that the IRS performs by mail. Correspondence audits ...
  3. Appeals Conference

    A conference that a taxpayer can request with the Internal Revenue ...
  4. IRS Publication 556: Examination ...

    A document published by the Internal Revenue Service (IRS) that ...
  5. IRS Publication 1

    A document published by the Internal Revenue Service that identifies ...
  6. IRS Publication 594

    A document published by the Internal Revenue Service (IRS) that ...
Related Articles
  1. Professionals

    Specific Types Of Representation

    Describes exam topics related the capacity in which an enrolled agent can represent clients.
  2. Taxes

    How Does An IRS Audit Work?

    It doesn't automatically mean an IRS agent will be ringing your doorbell. Here are the different types of IRS audits and how to handle them.
  3. Taxes

    What's an Audit?

    An audit is an objective examination of accounting records that makes sure the records are a fair and accurate representation of the transactions they claim to represent.
  4. Professionals

    Audits

    Audits
  5. Tax Strategy

    Make $1 Million? Expect an Audit

    If you make $1 million or more, the IRS has its eyes on you. Here's what you can do about it.
  6. Retirement

    Avoid An Audit: 6 "Red Flags" You Should Know

    Don't make yourself a target - steer clear of these attention-grabbing tax-filing practices.
  7. Taxes

    Personal Income Tax Guide: Avoiding Nasty Surprises

    By Ken ClarkThe last thing any taxpayer wants to find in their mailbox is a letter from the IRS, unless of course it holds their refund check. That's why, for many taxpayers, filing their return ...
  8. Financial Advisors

    Advisors: Warn Clients About These Audit Triggers

    There are several factors that may increase the risk of an audit, especially with high-net-worth clients.
  9. Taxes

    How to Avoid the 6 Most Common Tax Audit Triggers

    These are the most common scenarios that can trigger the IRS to audit a tax return.
  10. Professionals

    Representation Before The IRS

    Describes exam topics covering legal authority and reference for Enrolled Agents.
RELATED FAQS
  1. What is an IRS letter audit / audit by correspondence?

    Learn about IRS letter audits, how tax returns are selected for audits and the common outcomes in the letter audits conducted ... Read Answer >>
  2. Can the IRS audit you after a refund?

    Learn how the U.S. Internal Revenue Service (IRS) can conduct a tax audit even after a taxpayer was issued a tax refund in ... Read Answer >>
  3. What should I do to prepare for an IRS audit?

    Find out how to prepare for an IRS audit, what kinds of audits you might face and what kinds of habits you should develop ... Read Answer >>
  4. Are IRS audits random?

    Learn about how the U.S. Internal Revenue Service (IRS) conducts its tax audits based on random selection, document matching ... Read Answer >>
  5. Can the IRS take your house?

    Understand why a person would have his home seized by the IRS and what he can do to avoid it. Learn about the seizure process ... Read Answer >>
  6. Are IRS penalties tax deductible?

    Learn about penalties assessed by the U.S. Internal Revenue Service and how the IRS does not taxpayers to deduct them on ... Read Answer >>
Hot Definitions
  1. Yield Curve

    A line that plots the interest rates, at a set point in time, of bonds having equal credit quality, but differing maturity ...
  2. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will ...
  3. Keynesian Economics

    An economic theory of total spending in the economy and its effects on output and inflation. Keynesian economics was developed ...
  4. Society for Worldwide Interbank Financial Telecommunications ...

    A member-owned cooperative that provides safe and secure financial transactions for its members. Established in 1973, the ...
  5. Generally Accepted Accounting Principles - GAAP

    The common set of accounting principles, standards and procedures that companies use to compile their financial statements. ...
  6. DuPont Analysis

    A method of performance measurement that was started by the DuPont Corporation in the 1920s. With this method, assets are ...
Trading Center