The IRS conducts the office audit procedure through the following steps. Let’s understand each of them, which are as follows:
An office audit generally begins with a letter from the IRS. The letter tells you that the IRS has selected your tax return for examination and explains what you need to do next.
Individual taxpayers may receive the following two letters:
1. Letter 3572
Letter 3572 is a “call-back” letter. It asks you to contact the IRS examiner within a specified period to arrange an appointment.
The IRS’s current procedures generally allow 14 calendar days to respond, including mailing time. However, some sample versions of the letter may refer to a shorter period, so you should always follow the deadline shown on the letter you actually receive.
2.Letter 2202
Letter 2202 is an appointment letter.
Instead of asking you to call to arrange a meeting, the letter can provide a specific date, time, and location for your audit appointment.
What Does the Initial Letter Tell You?
The letter generally explains:
The IRS may also send Form 4564, Information Document Request (IDR). This form lists the specific documents and information the IRS wants you to provide.
The same basic office audit process applies to taxpayers living abroad. However, your mailing address is especially important.
The IRS generally uses your “last known address” when sending certain important tax notices. In simple terms, this is generally the address the IRS has on record for you, usually based on your most recently filed and properly processed tax return, unless you have properly notified the IRS of a different address.
For example, suppose you moved from the United States to Ireland.
If you properly notified the IRS of your new Ireland address, the IRS may use that address when communicating with you.
If you moved to Ireland but did not update your address, the IRS may continue using your old U.S. address. You could therefore miss an important IRS letter and its deadline.
International taxpayers should therefore make sure the IRS has their current mailing address.
Next, let’s understand in detail how the IRS audits international taxpayers outside the United States through office audits.