Everything you need to know about an IRS audit!

IRS audit is an examination conducted by the internal revenue service in which it checks all your accounting books to find any mistakes or errors. It is usually done when the IRS has some doubts about a certain person, and to clear that doubt; it sends an audit notice to that person.

If you have not faced an IRS audit before, then you must now be aware of some important things about it. There are some important aspects of an IRS audit that you must understand so that even if you get selected for an audit, you can handle it easily. Some of the crucial aspects of an IRS audit are as follows;

You are not accused of any crime

If you are facing an audit, then it doesn’t mean that you have committed any crime. IRS audit is a simple reconsideration of your tax return to ensure that there is no tax gap.

You need to show documented evidence for your deductions and need to prove that you have mentioned all your income sources in the taxation.

IRS can only conduct an audit within three years of tax filing. So, if you are honest and have clear records, then you need to worry about the audit.

There various kinds of audits

Most people are not aware of the fact that audits are of different types. There are mainly three typesof audits conducted by the IRS, and you need to understand all of them. Three major types of audits are mainly; office audit, field audit, and correspondence audit.

A correspondence audit is conducted when there are minimal mistakes, and you can prove yourself by e-mailing the papers. In an office audit, you need to take all your tax papers and documents to the IRS office, and they check it there.

At last, the field audit occurs when IRS auditors visit your place and examine all the paperwork and evidence.

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