What To Expect From a IRS Office Audit, a Former IRS Agent Explains the Process


IRS has many different types of of audits and one of the most common is the office audit which is usually located somewhere near your house or in your community at the local IRS office.

The office audit is a small business or individual type of audit.

Usually this audit has kicked out because of your DIF score.

The DIF score is a discriminatory index function score that has determined that your tax return falls  out of the IRS normal ranges and averages and as a result the case gets sent out to the local IRS office for tax audit review.


BEWARE: The auditor can expand the audit to go back or forward so you must be careful. If you have doubts about your tax return seek a good tax professional, they are worth the money you save.


Office audits typically surround matters pertaining to:


1. Itemized deductions (Schedule A),

2.business profits/losses (Schedule C),

3.Rental income/expenses (Schedule E).


Often one issue with a schedule can trigger an audit, but audits can quickly expand if the auditor suspects there may be problems in other areas of the return.

The office interview will consist of questions related to the issue under examination.

There may also be more generalized questions about employment, financial position, and lifestyle in an attempt to find other causes for concern.

An individual should give careful consideration to the answers and documentation provided to the IRS.

It’s very easy for a taxpayer to unintentionally give the auditor a reason to expand the scope of the audit.

An office audit with the IRS will typically conclude after just one day but the auditor may want follow up documentation.



The rule of thumb whether to hire a tax professional.

If your tax return is squeaky clean do-it-yourself, but if you feel you have skeletons in your closet and many items were fudged and put together and you feel there could be issues looming, never going by yourself, it’s well worth the money to hire a tax professional is at the end of the day they are well worth there keep.

You do not have to pay the bill if there is a tax adjustmnet made.

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Mr. Michael D. Sullivan

Michael D. Sullivan is the founder of MD Sullivan Tax Group. He had a distinguished career with the Internal Revenue Service for 10 years. As a veteran IRS Revenue Officer / Agent, he served as an Offer in Compromise Tax Specialist and Large Dollar Case Specialist.

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