{"id":354032,"date":"2022-08-19T07:44:46","date_gmt":"2022-08-19T12:44:46","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-law\/tax\/tax-problems-audits\/what-is-a-tax-audit.html"},"modified":"2023-11-26T02:33:20","modified_gmt":"2023-11-26T07:33:20","slug":"what-is-a-tax-audit","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/tax\/tax-problems-audits\/what-is-a-tax-audit.html","title":{"rendered":"What Is a Tax Audit?"},"content":{"rendered":"\n
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What Is a Tax Audit?<\/h1>\n
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\n By FindLaw Staff<\/a> | Legally reviewed by J.P. Finet, J.D.<\/a>\n | Last updated\n
\n \n <\/i>\n Legally Reviewed\n <\/summary>\n\n
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This article has been written and reviewed for legal accuracy, clarity, and style by FindLaw\u2019s team of legal writers and attorneys<\/a> and in accordance with our editorial standards<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n\n

\n \n <\/i>\n Fact-Checked\n <\/summary>\n\n
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The last updated date refers to the last time this article was reviewed by FindLaw or one of our contributing authors<\/a>. We make every effort to keep our articles updated. For information regarding a specific legal issue affecting you, please contact an attorney in your area<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n<\/section>\n

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Many Americans, even those who strive to abide by the law, have a fear of being audited by the Internal Revenue Service (IRS). This fear often stems from the worst-case scenarios and horror stories from friends and family about the dire consequences that may result if an audit finds someone cheated the IRS.<\/p>\n\n <\/div>\n\n

The reality of a modern IRS tax audit is often very different. The IRS has been conducting nearly two-thirds of its audits by mail. In most cases, the IRS only asks to verify information like your income, dependents, and eligibility for tax credits.
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However, you must take even an IRS audit conducted by mail seriously. Any IRS audit can have significant consequences and lead to you paying thousands of dollars in past-due taxes, penalties, and interest. In the following sections, we will review the basics of an IRS audit, how to handle it, and your taxpayer rights.<\/p>\r\n

Tax Audits: The Basics<\/h2>\r\n

An income tax audit is a formal examination<\/a> conducted by the IRS to verify information, uncover inaccurate tax returns, or look for fraud. The IRS selects income tax returns to examine through random selection and based on apparent irregularities in the returns that have raised questions about your tax liability.<\/p>\r\n

If the audit is selected at random, the IRS will take a closer look to ensure all the information on your return is accurate. Nonrandom audits occur when the IRS flags a return for errors, incomplete information, or possible fraud.<\/p>\r\n

The IRS usually sends out an audit notice by mail for the following reasons<\/a>:<\/p>\r\n