Your tax manager (Connie) has received the following email from one of your most important clients (Steve).

Connie,

I just received a letter from the IRS that they have selected my federal income tax returns for 2018, 2017, and 2016 for audit. They have scheduled an appointment at the IRS Austin office for the end of April. The letter states the following items will be the primary focus of the examination: Schedule E, Real Estate Losses, Non-cash charitable contributions, and Schedule C Travel Expenses.

I'm panicking! I don't understand why my tax return was selected for examination and what the examination will entail. What if I don't agree with the IRS agent? What's my protest/appeal process?

Can you please help me!!!

Steve

Responses needed for the following questions:

oSelection of returns for examination

oType of examination and what Steve will experience (including the conclusion of the examination)

oProtest/Appeal process