Even though IRS changed the name of it's Audit Division

to Examination Division in the 1980s or

thereabouts, people still refer to AUDITS. Last

night on a TV show, an actor playing the part of

a Revenue Agent said that he was performing an audit.

Examinations are greater in scope and include

checking for other issues such as payroll tax liability,

gift tax, estate tax, etc.

IRS did not change the name of their Tax Auditors to

Tax Examiners because they already had employees

with that name. But this added to the confusion: Tax

Auditors performing examinations, not audits.

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>>IRS performs Examinations NOT audits<<

... and I grow hybrid teas, not roses.

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Section 7602 of the Internal Revenue Code authorizes

IRS to perform EXAMINATIONS, not audits. Since IRS

no longer has an AUDIT Division,they would be hard-pressed

to perform audits. There IS an Examination Division which

performs examinations.

Of course it is simply a a matter of wording.

I find it interesting that almost 30 years after the IRS changed from

audits to examinations we still encounter references to audits.

To taxpayers it makes no difference what IRS calls it.

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Then why do they have Audit Reconsideration?

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>>they would be hard-pressed to perform audits<<

Yes, I believe the IRS is under quite a bit of pressure to step up their audits.

By definition, an audit is an EXAMINATION of financial records. Using the longer word avoids some of the bad connotations that previous IRS tactics engendered, and it also emphasizes that the IRS has a different role from CPA's.

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Do the semantics matter?

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Thank you very much!

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YES! words have definitions. You don't chage the definition. If you do, you'll have no meaning yes!

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>>words have definitions<<

They have synonyms, too. In the context of the IRS, examination and audit mean the same thing and are used interchangeably. Each word may suggest different associations to some people, but personally I've never found much use for poetry as an audit strategy.

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In or about 1982 the Audit Division was changed to

the Examination Division. It was told repeatedly to the Tax Auditors and Revenue Agents that they would

no longer perform audits, but would now perform examinations. Every since it has been stressed that

TAXPAYERS are examined, NOT tax returns. I consider this change in name to be a mistake as it has resulted in confusion among the public and tax preparers. Jainen is correct, the word used:

examination or audit makes no differance. I just thought it was an interesting but inconsequential

fact.

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