Internal Revenue Service audits (or “exams” in IRS lingo) are an integral part of the tax compliance landscape. Although statistically few returns are selected for exam each year, this fact tends to be of little comfort to the taxpayer who has won the “audit lottery.” While CPAs cannot do much to prevent a client’s return from being audited, they can perform a valuable service by assuring that the exam is no more of a burden on the client than is necessary and that the client’s rights and interests are adequately safeguarded. Accomplishing this objective begins with a familiarity with the audit process. TOPICS DISCUSSED • RAR: Revenue Adjustment Report • Preparing responses • Accounting for audit adjustments • Amended state tax returns • Installment Agreements • Offers in Compromise • The Assessment Process • The Collection Process for seizures and sales of taxpayer property • The IRS process for seizures and sales of taxpayer property