Summary
Many Americans are preparing their tax returns before the April 15 deadline and want to avoid IRS audits. Audits check if tax return information is correct and often happen due to mismatches or unusual patterns. To minimize audit chances, accurate income reporting and good recordkeeping are important.
Key Facts
- An IRS audit reviews tax return accuracy and is not random; it often starts due to mismatched data or unusual filings.
- Audits are rare, affecting about 0.2% to 0.5% of tax returns annually.
- Audits begin with a letter from the IRS, not a phone call or email.
- The IRS usually examines returns from the last three years, but this can extend to six years or more in special cases.
- To avoid an audit, ensure income is reported accurately and keep records organized.
- Taxpayers with foreign income or assets should be careful about disclosures to avoid penalties and extended audits.
- Correcting errors through an amended return won't necessarily lead to an audit, but these returns may still be reviewed.
- If contacted by the IRS, you can often ask for extra time to respond.
