IRS audit

An IRS audit is a formal examination conducted by the Internal Revenue Service (IRS) to verify the accuracy of an individual's or organization's tax returns. The main goal of an audit is to ensure compliance with tax laws, identify inconsistencies or reporting mistakes, and achieve fair tax collection.

Audits typically occur when the IRS identifies questionable or unusual items in a tax return. These examinations may be randomly selected or triggered by certain signals, like substantial differences from the norm, inconsistent reporting, or missing income reported by third-party sources.

There are three main types of IRS audits:

1. Correspondence Audits: Conducted through mail for minor discrepancies.
2. Office Audits: Require taxpayers to provide documentation at an IRS office.
3. Field Audits: More thorough examinations conducted at the taxpayer's place of business or home by an IRS revenue agent.

During an IRS audit, taxpayers may need supporting documents such as receipts, records of income, and proof of deductions or credits claimed. Following the audit, the IRS will determine if adjustments are necessary, which may result in additional taxes or refunds.

For detailed guidance and resources, visit the official IRS audit page.