IRS field visit, not part of the paperwork audit

[berettafan]

no problem if you can support it. i'm just not a huge fan. honestly if I was with IRS i'd not even bother with it since it amounts to peanuts for most returns.

but in SO's case I suspect the agent is suspicious of mixing personal expenses into the business.

[masraum]

Originally Posted by dafischer

Fishing expedition.

That's my thought and also why I think it would be a good idea to have someone like a lawyer around.

"oh, don't worry, this is just an informal visit."

Yeah, bullschmidt. That sounds like a tactic to set people at ease so their guard is down. I'm pretty sure, the IRS, police, etc... can go use anything from an "informal visit" to make things very formal, very quickly.

[masraum]

Originally Posted by Rick Lee

But why would you ever help them when they're trying to build a case against you? I'm not aware of any special powers they have when it comes to search and seizure. They can ask for consent, just like your local cops or even nextdoor neighbor can. You don't have to give it and they'd need more than your refusal to constitute PC for a warrant. Or is there a current audit going on and this "visit" is a part of that?

I'm guessing that the IRS is much less regulated re: probable cause and that sort of thing, than the police. I suspect not as many checks and balances are in place for the IRS as the police. I also think they are likely to push their authority, and folks let them because not as much is known about them as the police.

[masraum]

Originally Posted by mikehinton

I'm a CPA in private practice, and have been involved in dozens of IRS audits over the years. The request by an agent to inspect business premises is quite common. My advice would be to have your representative present at that meeting, and have him or her answer all of the questions posed by the IRS agent. If you do need to answer any questions, you should treat the situation the same as a deposition. Namely, just answer the question asked, and provide no additional background information.

It's good to hear that this may be unusual, but not unheard of. Interesting.

[SpyderMike]

I had a three year audit this year and had the same request. I politely said no...and that was the end of that request. I think the IRS is trying to break down some walls and seem more human....not necessarily more humane. It could have been a fishing expedition, but my home has nothing to do with my business, and they were trying to meet at my table.

Don't read too much into it. I didn't and I got through the process.