This research uses data on 45 taxpayers subject to office audits by the IRS from the Federal Student Tax Clinic operated by the University of North Texas (UNT).
Research regarding the benefits of taxpayer representation during IRS office audits is important for several reasons.
If taxpayers hire practitioners to reduce the likelihood of owing additional taxes in an audit, we expect the results from routine, annual IRS office audits to help tax practitioners and their clients evaluate how successful paid preparers are.
To answer these questions, this study analyzes randomly selected 1998 office audits and finds that CPA-assisted returns resulted in fewer audit adjustments than self-prepared returns.
This research uses data on 45 taxpayers subject to office audits
from the Federal Student Tax Clinic operated by the University of North Texas between 1993 and 1997.
An office auditor conducts less complicated office audits
and is only required to have completed two accounting courses; revenue agents, in contrast, conduct more complicated audits and must have at least 20 hours of accounting courses.
A district office audit
may be an office visit where the taxpayer goes to an IRS facility or a field audit held at the place of business.