A Paper Audit or “Correspondence Audit” is when you are usually missing documentation and the IRS auditor will request the missing or additional documentation to be sent by mail. This is a common type of audit when a taxpayer mistakenly left out a 1099 or W2, or if their file does not match their file from previous years even though employment has not changed. This is usually handled through the mail or by fax with correct submission of documents.
An “Office Audit” is entirely different and usually includes contact from and IRS examiner who will delve into your tax return and financial circumstances. He or she may request various documents and or an explanation of just how you reached the calculations for your deductions. The IRS may also review your bank accounts to determine if the amount deposited matches the amounts specified on your returns. If the amounts differ? You may be in for a serious problem with your auditor. This is why it is so important to have professional expert representation when dealing with IRS officials. Going it alone is just not an option you should consider.