The IRS reserves the right to audit any tax return for any reason. Your readings this week introduced you to the audit process, which is an important part of a tax professional's job any time an audit occurs.

These questions will check your understanding of that process.

In a Word document, answer the following questions:

Describe the significance of a "30-day letter" and "90-day letter" as each relates to the IRS audit process.

The Internal Revenue Code sets a limit on the amount of time the IRS can assess a tax. Provide an example of when each of the following assessment statute of limitations would apply:

3-year statute of limitation

6-year statute of limitation

No statute of limitation

The Internal Revenue Code also sets a limit on the amount of time a taxpayer can receive a tax refund. What is the statute of limitation for a refund claim?