Many people are afraid of a tax audit. When
your tax return is selected for a tax audit, it does not mean
you have done anything wrong or that you owe more taxes. A tax
audit usually scares people into thinking they owe more taxed
or penalties to the IRS. A tax audit is a term the IRS
uses for general questioning of a tax return. When you are
called by the IRS for a tax audit, you should not be afraid. A
tax audit can be painfree and easy to deal with. The IRS treats
people who come in for tax audits with respect, not
When people talk about a tax audit, they
usually mean IRS personal income tax audit but there are other
types of tax audits such as sale tax audit. For the purpose of
this IRS Audit website, we will refer to personal income tax
audit as a tax audit and sale tax audit as sale tax audit.
What is a tax audit?
A tax audit is the process which the
Internal Revenue Service (IRS) assess whether your tax return
is correct or not. When your tax return is selected for a tax
audit, it does not mean your tax return contains incorrect data
or that you owe more taxes to the IRS or that you have done
something wrong. The IRS simply wants to verify some
information on your tax returns.
What does the IRS usually audit in a tax
For your personal income tax audit, there
are two potential areas on your income tax return the IRS could
question. The first is your income and the second is the
deductions you claim such as dependents or itemized business
deductions. Out of the two, the IRS is more likely to
concentrate on the tax audit of your income rather than tax
Will the IRS be nice during the tax
There are many views whether the IRS is
reasonable during a tax audit. Some people think the IRS is
there to collect money and more money using any means possible.
However, others feel that the IRS is fair and tax audits are
pain free. Some IRS officers have taken a view that
it's easier to collect taxes when they are nice. So, whether
your IRS tax audit officer will be nice or not depends on the
person and where the audit is.