An IRS audit is a review of your return and records to make sure they are right. The IRS starts an audit by mail, never by phone. Most audits look at returns filed in the last 2 years.
Who it fits
People who got an audit letter or a CP2000 notice about income that doesn't match.
- Who it fits
- Got an audit letter
- Cost
- No fee to respond. A one time 30 day extension is usually allowed for mail audits.
- IRS form
- Form 2848 lets a tax pro speak for you
What to know first
The IRS notifies you of an audit by mail. It won't start an audit by phone.
Some returns are picked by a formula or because they are tied to someone else's audit.
Usually returns from the last 3 years. If there is a big error, more years may be added, but usually not more than 6.
For mail audits, the IRS can usually grant a one time 30 day extension.
If you don't respond, the IRS finishes the audit without you and sends its proposed changes.
You have a right to representation. Enrolled agents, CPAs and attorneys can represent you on any matter.
Common questions
How long should I keep records?
The law says keep the records you used to prepare a return for at least 3 years from the date you filed it.
Source: IRS: IRS audits
Is a CP2000 an audit?
It is a notice that income reported to the IRS does not match your return. It is not a bill, but you may need to reply by the date listed.
Do I have to agree to extend the time limit?
No. But if you don't agree, the auditor will decide based on what you already gave.
Source: IRS: IRS audits
Results depend on your situation. Not every case qualifies.
