Should the IRS conduct a field audit at your home or office?

NEITHER one, actually. You see, IRS conducts field audits where the books and records of a business are maintained. This, of course, is your office, home, warehouse, factory, or store. But I don’t like any of these locations. What I like is my own accounting office. After representing taxpayers in IRS disputes for decades, I prefer that your memorial services…I mean your audit, be conducted at my office.

Let me tell you why:

1. I do not want a Revenue Agent probing around your place of business.

2. I do not want the agent interviewing your employees.

3. I do not want your customers or clients noticing an IRS agent in the premises.

4. I also do not want your children getting wrong ideas about IRS agents in your home.

It’s not good for business. It’s not good for employee morale. It’s not good for you and your family.

Here Are Tips To Move IRS Field Audits From Your Place To My Office:

1. IRS regulations state that if conducting the audit at the place of business would essentially require the business to close or would unduly disrupt business operations, the agent can change the place of the exam to an IRS office, but this only my second choice.

2. My first choice is our own office. This shifts the audit venue from your office to mine. We do not have to worry about the agent overhearing employees talking or observing business operations. I can control the flow of information, the timing of interviews, and the general course of the audit at my office.

3. The agent will resist the change so we just have to be persistent. One way is to request for a site where the main books and records are located. The main books are sales journals, cash receipts journals, cash disbursements journals, general ledger, and trial balances that are all located in my office.

4. Backup records such as receipts and invoices are at your place of business and can be produced as requested. It may not work but if you are persistent enough, the agent and his/her manager may permit the change of venue.

5. Lastly, make sure that requested invoices, receipts, bank statements and other documents are at my office; otherwise, the rationale for the change of venue is blown. This would be embarrassing. In the meantime, conduct your business as usual and let me take care of your audit at my office. Under my supervision. Under my control. Good day.

 

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Victor Santos Sy graduated Cum Laude from UE with a BBA and from Indiana State University with an MBA. Vic worked with SyCip, Gorres, Velayo (SGV – Andersen Consulting) and Ernst & Young before establishing Sy Accountancy Corporation in Pasadena, California.

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He has 50 years of experience in defending taxpayers audited by the IRS, FTB, EDD, BOE and other governmental agencies.  He is publishing a book on his expertise – “HOW TO AVOID OR SURVIVE IRS AUDITS.” Our readers may inquire about the book or email tax questions at [email protected].

 

Victor Sy, CPA, MBA (retired)

Victor Santos Sy, MBA. CPA (Retired) Victor Santos Sy graduated Cum Laude from UE with a BBA and from Indiana State University with an MBA. Vic worked with SyCip, Gorres, Velayo (SGV – Andersen Consulting) and Ernst & Young before establishing Sy Accountancy Corporation. * * * He retired after 50 years of defending taxpayers audited by the IRS, EDD, BOE and other governmental agencies. He published a book on “How to Avoid or Survive IRS Audits” that’s available at Amazon. Readers may email tax questions to [email protected].

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