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How does an IRS audit occur?

On Behalf of | Oct 26, 2021 | Criminal/Civil Tax Litigation |

When it comes to the IRS, many people stress overpaying taxes and being correct on tax paperwork. If you receive notice about an audit, it can be overwhelming.

How can you expect an audit to work? According to the IRS, there are a couple of different ways to perform an audit.

How does the IRS contact you?

You will never receive an audit over the telephone. When the IRS notifies you of an audit, you will receive the notification through the mail. Generally, the IRS audits through the mail or an in-person interview. You may discuss this at an IRS office, your home, your accountant’s office or your business.

When the IRS conducts the audit by mail, they will request you send them information through the mail. When you send the information, request confirmation from the delivery service.

What should you expect?

The IRS expects you to have all tax returns for at least three years. Keep your records handy, so you can quickly call on them for information. The IRS includes taxes filed within the last three years in most cases but can go back six years.

When it comes to the time it takes to go through an audit, it can vary depending on the information you have available, your availability and whether you disagree or agree with the audits’ findings. The IRS employees have to treat you professionally and courteously. The IRS cannot keep information from you. For example, if you want to know why the IRS wants more information, you have a right to the answer.

Likewise, you have a right to appeal, to disagree and to have representation.