Reasonable Accommodations and Security Concerns
The Internal Revenue Service has the authority to determine the time and place of the examination provided they are reasonable under the circumstances. Generally, the audit is conducted at the taxpayer’s place of business because the books, records, and knowledgeable individuals are located there. The taxpayer and the IRS should work together to identify appropriate workspace at the taxpayer’s place of business. Several factors must be taken into account when identifying appropriate workspace. First is the number of individuals that will be working on the examination. Second is security. Many items that will be reviewed as part of the examination will be confidential in nature. This will include copies of tax returns, payroll records, and various documents that the company or IRS may consider confidential. Security will also be needed due to computers and other equipment on site.