An internal revenue service audit (IRS) audit is an examination of an individual's or organization's financial records and tax returns to ensure that information is reported accurately and complies with tax laws. The IRS conducts audits to verify that taxpayers have correctly reported their income, deductions, and credits. There are several types of audits, including correspondence audits, which are conducted by mail, and field audits, where an IRS agent visits the taxpayer’s location.
Taxpayers selected for an audit are notified by mail and should never respond to email or phone calls claiming to be from the IRS, as these are often scams. During the audit, taxpayers must provide documentation such as receipts, invoices, and bank statements to support the information reported on their tax returns. The duration of an audit can vary depending on the complexity of the case and the availability of records.