Why was I picked for an audit?
The IRS says selection does not always mean there is a problem. Some returns are picked by a statistical formula that compares them with similar returns, and some are pulled because a business partner or investor you deal with was audited (IRS audits). Filing an amended return does not change whether the original is selected, and the IRS says a refund is not necessarily a trigger.
How do I know the audit letter is real?
The IRS starts every audit by mail. It says it will not start an audit by phone (IRS audits). If someone calls claiming to be an auditor and asks for payment, hang up and call us or the number on the IRS website. A real letter names the tax year, the items under review and a contact number.
What kind of audit is it?
The IRS runs three kinds, and the letter tells you which one you have:
- Correspondence audit. Done by mail. The letter asks for documents on specific lines, such as income, expenses or itemized deductions.
- Office audit. An interview at an IRS office.
- Field audit. An interview at your home, your place of business, or your accountant or representative's office.
For mail audits, the IRS can ordinarily grant a one-time 30-day extension if you fax or mail a request. If you already have a Notice of Deficiency, it cannot extend the 90 days you have to petition the U.S. Tax Court (IRS audits).