The short answer
An IRS audit (also called an examination) is a review of your return to check that income, deductions, and credits are reported correctly. Audits are conducted either by mail or through an in-person interview, and the IRS first contacts you by mail. Read the letter carefully, respond by the date printed on it, and send copies of the records it asks for. Many audits end with no change; if the IRS proposes changes you disagree with, you have appeal rights.
A CP2000 is a different kind of IRS notice: it proposes changes to your return because information reported by third parties does not match what you reported, and it has its own response process. See CP2000 notice: what it means and how to respond.
First: is it really the IRS?
- The IRS notifies you of an audit by mail. It does not start an audit by phone, and it does not start contact by email, text, or social media.
- An examiner may call or visit about an audit after you have received a letter.
- A call, email, or text that is unexpected, rushes or threatens you, asks for personal or financial information, or demands payment now is a warning sign of a scam.
If in doubt, use the contact information on IRS.gov — see I received an IRS letter.
Types of audits
| Type | How it works |
|---|---|
| Correspondence audit | Handled by mail; the letter asks for more information about certain items on the return |
| Office audit | An in-person interview at an IRS office |
| Field audit | An in-person review at your home, business, or representative's office |
What the IRS may ask for
The letter lists the items under review and the records to send — for example receipts, bills, canceled checks, statements, or other documents that support income, deductions, or credits. Send copies, not originals, and keep a record of what you sent. Generally you should keep the records used to prepare a return for at least three years from when it was filed.
How far back an audit can go
Generally, the IRS can include returns filed within the last three years. If it identifies a substantial error, it may add years, but it usually does not go back more than the last six. Separately, the time the IRS has to assess additional tax (the statute of limitations) is generally three years after the return was due or filed, whichever is later. Exceptions can allow more time — for example, there is no time limit if a required return was never filed or a return was fraudulent. If an audit is not resolved, the IRS may ask you to agree to extend that period.
How an audit can end
| Outcome | What it generally means |
|---|---|
| No change | The IRS accepts the return as filed after reviewing the items |
| Agreed | You agree with the proposed changes and sign; any tax due is billed |
| Disagreed | You do not agree; you can request a conference with a manager or use your appeal rights |
Some audits even result in a refund. If you owe tax you cannot pay at once, see I can't pay my tax bill.
If you disagree
The IRS letter that proposes changes explains your options and deadlines. Generally, you can ask for an independent review by the IRS Independent Office of Appeals, which is separate from the examiner. If the IRS issues a notice of deficiency, that notice explains the time limit for petitioning the U.S. Tax Court. Use the dates in your own letters — Publication 3498 (and Publication 3498-A for audits by mail) and Publication 5 describe the process.
Publication 1 explains the Taxpayer Bill of Rights, including the right to be informed, the right to challenge the IRS's position, and the right to retain representation. An eligible representative — such as a CPA, enrolled agent, or attorney — can act for you with Form 2848. Low Income Taxpayer Clinics and the Taxpayer Advocate Service can help in some situations.
When to get professional help
Consider professional help if the audit is in person, covers a business or several years, involves large amounts, or if you disagree with the proposed changes. This guide explains the general process; it cannot predict how your audit will end.