An audit is a review of your tax return to verify information. Most audits are by mail and focus on specific items.
Types of audits
- Correspondence audits handled by mail.
- Office audits at an IRS office.
- Field audits at your home or business.
Why returns are selected
Returns can be selected by computer scoring, mismatches with information reported by employers or banks, or related examinations. Being audited does not mean you did something wrong.
Your rights
- To professional and courteous treatment.
- To privacy and confidentiality.
- To representation by a tax professional.
- To appeal an examination result.
- To pay no more than the correct amount of tax.
What to do
- Read the notice carefully and note the deadline.
- Gather records for the items questioned.
- Respond on time with organized documents.
- Consider hiring a CPA, enrolled agent or tax attorney.
- Keep copies of everything you send.
Frequently asked questions
How long should I keep tax records?
Generally at least three years, longer in some situations.
Can the IRS audit old returns?
Generally within a limited period, though longer for substantial errors or fraud.