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Question
I built a new home in 2006, claimed the sales tax on the new home and am now being audited for than year. I live in Chattanooga and IRS wants me to mail all receipts (over 400)
to their office in Texas for audit. I requested to have my audit moved to their local office and so far have only met with resistance. Can IRS make you audit out of town?
I am neither a tax nor IRS expert but in the interest of trying to offer you some guidance, I will take a shot at responding. Please keep this caveat in mind when you rate me.
According to the IRS guidelines, you may request to meet in person at a time and location convenient to both you and the IRS. That said, they examine (audit) return by several means... mail being one of them. I cannot tell you specifically what they can or cannot do as that is a matter of law (tax code). If you feel threatened, you can Google for tax lawyers or tax advocates that will act in your behalf usually for a fee.
Note, the fact that you are being audited does not necessarily mean that you have done anything wrong. I would retain good copies of everything you send to the IRS and also ask if they will accept photocopies of receipts and documents.
Here are a couple of links with more information.
The IRS handbook on audits:
http://www.irs.gov/publications/p556/index.html
Your rights as a taxpayer (regarding examinations)
http://www.irs.gov/publications/p1/ar02.html#d0e76
Answers to frequently asked questions about a taxpayer's worst nightmare: the audit.
http://www.nolo.com/article.cfm/objectId/49A830FC-8F03-493F-915E884F5AFEB840/213...
Surviving an IRS Audit
http://www.fool.com/personal-finance/taxes/2006/10/13/surviving-an-irs-audit.asp...
An IRS Audit
http://www.metlife.com/Applications/Corporate/WPS/CDA/PageGenerator/0,1674,P1422...
I hope this information is useful to you. Good luck.
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Don Sadler
Expertise
I can answer regarding Internal Auditing - especially operational audits, audit management, and how to revitalize a dysfunctional audit department. Also give advice to "auditees" on how to deal with auditors.
I DO NOT ANSWER HOMEWORK OR CLASS PROJECT QUESTIONS. For those answers, I suggest you scan previously asked questions and search on your favorite search engine.
I ALSO DO NOT ANSWER TAX QUESTIONS AS THIS IS NOT WITHIN MY EXPERTISE.
NOTE: I am not an accounting expert although i will try to help if I can... ask at your own risk.
Experience
I have worked in the public and private business management arena with experience in OMB, Resource Management, Internal Auditing and consulting. I am a former President of the Inland Empire Chapter Institute of Internal Auditors, previously held Director positions in the Orange County Information Systems Audit and Control Association and the Northern Telecom International User's Association. I am a Certified Fraud Examiner and a Certified Information Systems Auditor.
Organizations
Institute of Internal Auditors, Association of Certified Fraud Examiners, and Information Systems Audit and Control Association (ISACA)
Education/Credentials
MBA, CISA, CFE
Founder and Principal of Applied INTEGRITY Management Consulting Group
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