The three kinds of audit
| Type | How it runs | What it usually concerns |
|---|---|---|
| Correspondence audit | By mail, one or two specific items | A credit, a deduction, unreported income on a matched form |
| Office audit | In person at an IRS office | Several items, often Schedule C or Schedule E |
| Field audit | At your business or representative’s office | Business returns, broader scope, longer timeline |
How we handle it
- 1Read the notice properly. Scope, items in question, deadline, and which year is actually open.
- 2Power of attorney. Form 2848 so the IRS deals with us, not with you.
- 3Assemble documentation for the items in question — and only those items.
- 4Respond precisely. Answer what was asked. Volunteering unrelated material widens the audit.
- 5Negotiate the position where the law supports it, and concede where it does not.
- 6Appeal if warranted. Examination is not the last word; the appeals process exists and is often more reasonable.
Why was I selected?
Often a computer scoring model, sometimes a mismatch with a form a third party filed, occasionally a related examination. Selection is not an accusation.
How far back can they go?
Generally three years, extended to six where income is substantially understated, and without limit where a return was never filed or fraud is alleged.
Do I have to attend?
Usually not. With a power of attorney, we attend and correspond on your behalf. Some field audits benefit from the taxpayer being available, and we will tell you when that is the case.
What if I disagree with the outcome?
There is a formal appeals process with real deadlines. Missing one of those deadlines costs rights that cannot be recovered, which is the main reason not to handle an audit alone.
Talk it through before filing season starts
Start with a complimentary 15-minute introductory call about your situation and whether we are a good fit. No tax advice is given on that call.
Written by
Enrolled Agent, Oregon Licensed Tax Consultant
License number: Enrolled Agent 00160070-EA · Oregon Licensed Tax Consultant 35746-C
Heather has spent more than a decade preparing individual and business returns across the Portland metro and the Columbia Gorge, and holds unlimited rights to represent taxpayers before the IRS.
Last reviewed
This page is general information about Oregon, Washington and federal tax rules, not advice about your own return. Thresholds and rates change every year. Figures were verified as of August 2026 — check the linked official sources, or talk to us about your situation.