IRS Tax Audits
An IRS audit is a review and examination of a taxpayer’s tax return to determine that information is being reported correctly, according to the tax laws, and to verify that the amount of tax reported is correct. IRS can audit an individual’s personal income tax returns, a corporation’s income tax returns, a corporation’s payroll tax returns, a partnership’s tax returns, and even a non-profit organization’s tax returns.
IRS has several methods of selecting tax returns for examination, including the following:
Most audits are conducted through the mail. However, some taxpayers may be required to meet in-person with an IRS Revenue Agent at an IRS office. IRS audits may also be conducted at the taxpayer’s home, place of business, or accountant’s office. The IRS Revenue Agent will tell you what records to bring to the audit. Audits can result in no changes or changes in the taxpayer’s favor or in the IRS’s favor. Any proposed changes to your return will be explained in writing and you will have the option to appeal.
During an audit taxpayers are guaranteed certain rights, including: