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Audit Techniques Guides (ATGs)

These Audit Techniques Guides (ATGs) help IRS examiners during audits by providing insight into issues and accounting methods unique to specific industries. While ATGs are designed to provide guidance for IRS employees, they’re also useful to small business owners and tax professionals who prepare returns.

ATGs explain industry-specific examination techniques and include common, as well as, unique industry issues, business practices and terminology. Guidance is also provided on the examination of income, interview techniques and evaluation of evidence. So they may be helpful for business and tax planning purposes

NOTE: These guides are current through the publication date. Since changes may have occurred after the publication date that would affect the accuracy of these documents, no guarantees are made concerning the technical accuracy after the publication date. 

QuickBooksNonprofit SolutionsMassachusetts Tax

General Audit Information
(TPI) new formula based on Income / Deduction
  • 1. Where you live
  • 2. Size of family 
  • 3. Occupation 
(No longer use just your Adjusted Gross Income)

Last stage of (NRP) audits finishing up on S corps, and now moving to C corps and LLC’s
Types of Audits: 
  • 1. No contact 
  • 2. Correspondence
  • 3. Field Audit 
  • 4. Calibration Audit (line by line)

​IRS agents like to show up early in many cases and will ask as many open-ended questions as possible
General Audit Information

If the IRS shows up at your door, taxpayer rights (Pub 1) allow for representation, audit cannot continue until representation is obtained !!! 

I do not advise our clients to attend an Audit.

You may request the IRS case notes (auditors work papers) under code 6103 (they do no always want to turn them over understand your rights)

Do not sign an 872 Extension of the statute of limitation without a good reason

During an onsite business visit in most cases the IRS is only allowed in areas open to the public. (unless you allow or invite them in)

Employees in most cases are not required to talk to anyone from the IRS. 

Make sure you understand the rules before the audit takes place.

Your Nonprofit Status (is it in Danger?)