An IRS audit is an examination of your tax returns to verify that your income, deductions, and credits are accurate. Audits can be triggered for various reasons, such as discrepancies in your tax filings, random selection, or specific red flags that catch the IRS’s attention. Regardless of the reason, an audit can be a complex and time-consuming process, with significant financial consequences if not handled correctly.
There are several types of IRS audits, including:
- Correspondence Audits: The IRS requests additional information or documentation through the mail to verify certain items on your tax return.
- Office Audits: You are required to visit an IRS office to present documentation and answer questions related to your tax return.
- Field Audits: An IRS agent visits your home, business, or tax preparer’s office to examine your records and ask questions.
- Taxpayer Compliance Measurement Program (TCMP) Audits: These are thorough audits that review every line item of your tax return.
No matter the type of audit, having an experienced tax attorney by your side can make a significant difference in the outcome.