IRS Audit and Your Business

Receiving notification that the IRS wants to audit your prior-year tax return can be stressful. But knowing what to expect may help settle your nerves.

Types

There are three types of audits: correspondence (by mail), desk (at the IRS office) and field (at your business).

Timing

Generally, the IRS can go back three years to conduct an audit. And how long it takes to complete an audit varies depending on the complexity of the issues, the availability of audit evidence, flexibility of parties to schedule meetings and whether you agree with the auditor’s findings.

Finalizing

If you disagree with an auditor’s findings, you have the right to appeal or request mediation. Or you can request a meeting with an IRS manager.