Audit

An audit is an examination of your tax return by the IRS to verify the accuracy of your reported income, deductions, and credits. The IRS selects returns for audit through various methods, including computer screening and random selection.

Types of Audits

Correspondence Audit

The most common type of audit conducted entirely by mail. The IRS requests documentation for specific items on your return, such as charitable deductions or business expenses.

Office Audit

Conducted at an IRS office, typically for more complex issues that require face-to-face discussion. You'll be asked to bring specific records and documentation.

Field Audit

The most comprehensive type, conducted at your home, business, or tax preparer's office. These audits typically involve complex tax situations or significant discrepancies.

Common Audit Triggers

• High income levels - Returns with income over $200,000 have higher audit rates
• Large deductions - Deductions that are unusually large compared to income
• Business losses - Consistent losses from business activities
• Cash-intensive businesses - Businesses that typically deal in cash
• Mathematical errors - Simple calculation mistakes can trigger review

Your Rights During an Audit

You have specific rights during an IRS audit, including:

• The right to professional representation
• The right to understand why you're being audited
• The right to appeal audit findings
• The right to confidential treatment of your tax information

Professional Help

Consider hiring a tax professional for tax relief assistance if you're facing an audit. Enrolled agents, CPAs, and tax attorneys can represent you before the IRS and help navigate the audit process.

Audit Defense Strategies

• Maintain good records - Keep detailed documentation for all deductions and income
• Respond promptly - Meet all IRS deadlines and requests
• Be honest and cooperative - Provide requested information accurately
• Know when to get help - Complex audits often require professional assistance

If you're concerned about potential audit issues or need help with IRS tax balance verification, professional guidance can help protect your interests and ensure compliance with tax laws.