How does the IRS audit a tax return?

The IRS performs audits by mail or in person. The notice you receive will have specific information about why your return is being examined, what documents if any they need from you, and how you should proceed. Once the IRS completes the examination, it may accept your return as filed or propose changes.

What is an IRS audit by mail?

Download the full IRS Publication 3498-A, The Examination Process (Examinations by Mail) The IRS conducts audits in two ways – by mail, or in person. This topic deals with an audit by mail – where the IRS sends you a letter explaining your tax return has been selected for examination and identifying the items under review. The letter will outline:

What happens if the IRS selects my tax return for audit?

If the IRS selects your tax return for audit (also called examination), it doesn’t automatically mean something is wrong. The IRS performs audits by mail or in person. The notice you receive will have specific information about why your return is being examined, what documents if any they need from you, and how you should proceed.