Which of the following is a characteristic of the audit process?
A)Most taxpayer audits involve "special" agents.
B)Self-employed taxpayers are less likely to be selected for audit than employed taxpayers.
C)Less important issues are handled by means of a correspondence audit.
D)If a taxpayer disagrees with the IRS auditor's finding, the only resort is to the courts.
E)None of the above.

Question

Quizplus · Accepted Answer

Correspondence audit is a process of auditing less important issues through mail, phone or fax. Most taxpayers are audited by the IRS through correspondence audits. A is incorrect because most taxpayer audits are conducted by regular IRS auditors. B is incorrect as self-employed taxpayers are more likely to be selected for audit as they have more business deductions. D is incorrect as taxpayers have the option to appeal the auditor's findings through an administrative hearing or an independent appeals office. The courts are a last resort.

Which of the Following Is a Characteristic of the Audit