Legal Question in Tax Law in Massachusetts

Re: Length of Audit

The IRS has 3 types of audits:

1. Mail

2. Office

3. On-site.

Typically, a mail audit asks for information or backup materials on one or two issues. A perfect example is the allowance of a dependency deduction and child care credit. Usually, after the materials a re answered, you are give a letter stating there will be no-change, or a letter outlining the changes. If you disagree, you can appeal within the IRS.

Six months is too long for a reply from the IRS in a mail audit. Nevertheless, you have nothing (except interest) to lose in most cases (not every case!) and the statute of limitations runs 3 years after filing or the due date of the return, whichever is later. Why not wait?

I have additional information on my web site:

http://www.taxesq.com/

I hope this helps!

Ronald J. Cappuccio, J.D., LL.M.(Tax)