An IRS income tax audit is a formal review of an individual’s or business’s tax return to verify the accuracy of reported income, deductions, credits, and other tax-related information. The IRS conducts audits randomly or when discrepancies, red
...
flags, or unusual activity are detected in a return. Audits can be done by mail (correspondence audit) or in person (office or field audit), depending on the complexity of the issue. During an audit, the IRS may request supporting documentation such as receipts, bank statements, payroll records, or expense logs. If the IRS finds errors, it may propose changes that result in additional taxes, interest, or penalties. Taxpayers have the right to representation and can appeal audit findings. Preparing thoroughly and responding promptly is essential to protecting your rights and minimizing potential liabilities. Professional assistance—such as from a CPA, enrolled agent, or tax attorney—can help navigate the audit process effectively.
