DefinitionA tax audit is an IRS review of a return to verify that income, deductions, and credits are reported accurately. Audits range from a simple mailed correspondence request for documentation to in-person office or field examinations. The IRS generally has three years from filing to audit a return, extended to six years for substantial underreporting and with no limit in cases of fraud.
Good records and well-supported positions are the best defense, so firms help clients stay audit-ready and represent them if the IRS comes calling.
