The LTR 725A schedules your audit appointment at an IRS office. The letter specifies the date, time, and location, and identifies the tax year and issues under examination. It typically includes a list of documents to bring.
Types of Office Audits
Office audits (also called desk audits) are conducted at an IRS office by a Tax Compliance Officer. They cover more complex issues than correspondence audits but are more limited in scope than field audits. Common issues examined in office audits include itemized deductions, income from multiple sources, filing status verification, dependency claims, and small business income and expenses.
Preparing for the Appointment
The document list on the LTR 725A is your preparation checklist. Gather every item listed. Organize them by issue. If the audit covers charitable contributions and business expenses, create separate folders for each. Bring originals and copies. The auditor may keep copies but should never keep your originals.
Review your return before the appointment. Understand every number on every line that's under examination. If you can't explain where a number came from, the auditor will question it.
Representation
You have the absolute right to be represented by a qualified tax professional (attorney, CPA, or enrolled agent). With Form 2848 on file, your representative attends the appointment on your behalf. You don't have to go at all.
Representation is particularly valuable in office audits because the auditor will ask questions. Unrepresented taxpayers often answer questions in ways that expand the audit or create new issues. A tax professional knows how to answer accurately without volunteering information that invites further scrutiny.
Rescheduling
If the date doesn't work, call the number on the letter to reschedule. The IRS generally grants one reschedule without issue. Missing the appointment without notice can result in the auditor closing the case using only the information they have, which never works in your favor.
If you've received an LTR 725A, call us at (813) 229-7100. Audit representation is what we do.