How long does an IRS audit take?

How long does an IRS audit take to complete?

The IRS does not set a fixed length. It says the time depends on the type of audit, how complex the issues are, how quickly the requested information is available, both sides' availability for meetings, and whether you agree with the findings (IRS, IRS audits). Its mail audit guide adds that audits closed with all requested documents or a signed agreement can finish quickly, while other types can take several months.

So the honest answer to how long a tax audit takes is that a single-issue mail audit with complete records sits at the short end, while an in-person audit of a business return, or any audit that moves on to Appeals, runs longer because each added stage brings its own response periods. The IRS notifies you by mail if it needs more time.

What affects the IRS audit time frame?

The factor you control most is your records. Each round of letters asking for something you left out adds weeks: time for the IRS to write, time for you to reply, and time for the file to return to the examiner's queue.

Mail audit timing and extensions

A correspondence audit moves in rounds of letters, and each letter gives you a deadline, often 30 days. After you reply, the IRS aims to send a letter within 30 days confirming it received what you mailed or faxed. Then the examiner reviews it and either accepts the return or writes back.

Can you get more time to respond? Yes. For mail audits, the IRS says it can ordinarily grant a one-time automatic 30-day extension. Ask before the due date by calling or faxing the number on the letter. An extension adds a month to the audit, but it is far better than a missed deadline, which leads the IRS to disallow the items it asked about.

In-person audit timing

An office audit or field audit starts with a letter asking you to call and set an appointment, so the first weeks depend on scheduling. After the interview the examiner often issues a written list of further documents, and may need a second meeting. Field audits of businesses can involve reviewing books, bank records and sometimes a tour of the business.

Because in-person audits usually cover more items than mail audits, they take longer. A representative with Form 2848 can attend in your place, which can make scheduling easier. Publication 3498-A notes that if you ask to consult a representative during an interview, the IRS will in most cases stop and reschedule.

How soon after filing does the IRS audit?

There is no set waiting period. The IRS generally audits returns filed within the last three years, so a letter can arrive within months of filing or more than two years later. A refund being issued does not mean the return is closed to selection.

What caps the timing is the legal deadline to assess tax, generally three years from filing, explained on the IRS audit statute of limitations page. If an audit runs close to that date, the IRS may ask you to sign Form 872 to extend it. If you decline, the IRS usually wraps up with the information it has.

How long do the steps after the audit take?

Once the examiner finishes, the time left depends on what you do. If you agree and sign, the case closes and the balance is billed or a refund is issued; Publication 3498-A says a refund due after an audit usually arrives within 6 to 8 weeks. If you disagree, you get a set period to reply, often 30 days, before the IRS moves on.

• Manager conference: must be requested before the date on the letter, and can resolve a dispute without going to Appeals.
• Appeals: the IRS publishes no standard processing time; the case needs more than 365 days left on the assessment deadline to be accepted, per Publication 5.
• Notice of deficiency: 90 days to petition the Tax Court, or 150 days if addressed outside the US.
• Tax Court: the court sets its own schedule, and most cases are offered to Appeals for settlement before trial.

The IRS appeals process page covers those later stages.

What slows an audit down, and how to speed it up

1. Answer everything in one package. Go through the letter item by item and send support for each, with a short cover note listing what is enclosed.
2. Use the fastest channel offered. Fax or the upload option listed on the letter reaches the examiner faster than regular mail.
3. Label each page. Your name and taxpayer number on every page stops documents from being separated from your file.
4. Explain rather than go silent. If a receipt is gone, say so and explain how you figured the amount; silence leads to disallowance.
5. Keep a log. Record every call, the name of the person, and dates, so repeat requests can be answered with proof of what you already sent.
6. Sign promptly if you agree. An agreed report closes the case; waiting only adds interest.

For the whole process in one place, see the IRS audit guide.