How IRS Audits Work

The process of selecting a return for an audit usuallymail or you can request an interview with an examiner.
occurs in one of two ways.If IRS wants to "see" you they will conduct your
First IRS uses computer programs to identify returnsexamination via a personal interview.
that may not include all W-2 or 1099 Income, asIf you do not agree with what the examiner tells you in
compared to waht was reported by Employers oryour meeting, you can meet with the examiner's
Companies that hire Independent Contractors.supervisor.
IRS is not above, and admits, to obtaining informationIf you don't agree with the examiner or the supervisor
about taxpayers income from sources such asyou can appeal to the Appeals Office of IRS.
newspapers (news), public records, previous returns,A taxpayters Appeal Rights are explained in
averages, and OTHER individuals! If IRS decides thatPublication 5 and Publication 556, Examination of
the information is accurate, they may audit your return.Returns, Appeals Rights, and Claims for Refund.
Audits, or "Examinations" as IRS calls them, can beIf you do not wish to use the Appeals Office or
handled by mail or in person.disagree with the outcome you can take your case to
If your return is examined by mail, IRS will send you athe U.S. Tax Court, U.S. Court of Federal Claims, or the
letter asking for more information. You can respond byU.S. District Court where you live.