IRS audit guide: how audits start, run and end
An IRS audit always starts with a letter in the mail. How mail, office and field audits work, how far back the IRS can go, and how to dispute the result.
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Read the full guide: IRS Audit Guide: Types, Letters, Timelines and Appeals
Transcript
IRS audit guide: how audits start, run and end
An IRS audit is a review of a filed tax return to check that income, deductions and credits were reported correctly, and the IRS always starts one by mail, never by phone.
How audits start: By mail only; the IRS does not open an audit by phone.
Usual look-back: Returns filed in the last 3 years; generally no more than 6.
Mail audit extension: One automatic 30-day extension, usually granted.
The IRS tells you about an audit by letter sent to the address on your latest return or the address the IRS has on file.
The IRS runs audits in three ways: by mail (a correspondence audit), in an IRS office (an office audit) or at your home, business or representative's office (a field audit).
The IRS selects returns in three ways: random selection, computer screening that compares a return against statistical norms for similar returns, and links to another taxpayer's audit, such as a business partner or investor.
What is the IRS audit meaning in simple terms? It means the IRS is double-checking some or all of a filed return against your records.
