IRS Audit: What to Expect
An IRS audit is not the end of the world. It is a process with rules, and those rules protect you.
The IRS audits less than 1% of all returns. If you are in that group, the first thing to understand is that an audit is not an accusation of fraud. It is a review of your return to verify that the numbers are right. Most audits are triggered by statistical anomalies, not suspicion.
Three Types of Audits
Correspondence audits are the most common. The IRS sends a letter asking for documentation on specific items. You mail back the paperwork. Most are resolved without ever speaking to a human.
Office audits require you to visit an IRS office with your records. These are more thorough and usually cover multiple items on the return.
Field audits are the most intensive. A revenue agent comes to your home or business. These target higher-income returns and business entities. They can last months.
Your Rights During an Audit
You have the right to representation. You do not have to face the IRS alone — a tax attorney, CPA, or enrolled agent can handle the entire process. You have the right to know why the IRS is asking for information, what happens if you do not provide it, and your appeal rights if you disagree.
The IRS generally has three years from the date you filed to audit a return under IRC §6501. If they suspect a substantial understatement (25% or more of gross income), they get six years. Fraud has no statute of limitations.
The Most Important Rule
Do not volunteer information. Answer the questions asked. Provide the documents requested. Nothing more. Let us handle the audit for you.
Tax attorney Darrin Mish has spent 32 years getting taxpayers out of IRS trouble. Free consultation — no obligation.
Talk to a Tax Attorney →