Getting an IRS audit notice can feel personal, urgent, and confusing all at once. For many taxpayers, the first question is simple: What happens now? The good news is that an audit is a structured examination process, not an automatic finding of wrongdoing. In general terms, the IRS uses audits to verify items on a tax return, ask for supporting records, and decide whether any changes are appropriate.
In this post you’ll learn how the IRS examination process works for beginners, how audits usually begin, what records the IRS may ask for, what rights taxpayers have during the process, and where disagreements often go next. If you want a more detailed overview of the different audit formats and how the IRS handles records requests and proposed changes, it may help to start with this deeper breakdown of the main audit types.
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An IRS audit, also called an examination, is the IRS review of a tax return to confirm that reported income, deductions, credits, and other items are accurate. The IRS explains that audits may be handled by mail or through an in-person interview, and that the interview may take place at an IRS office, a home or business, or the office of a representative such as an accountant or attorney (IRS audits; Publication 3498, The Examination).
A lot of people hear “audit” and assume the return has already been found incorrect. That is not how the process is described by the IRS. An examination is a review. Sometimes it ends with no change. Sometimes it ends with additional tax. In some cases, the examination can even result in a refund (IRS Data Book 2024).
The IRS closed 505,514 tax return audits in Fiscal Year 2024, according to the agency’s latest Data Book, so while audits are not common for most taxpayers, they are also far from unheard of (IRS FY 2024 Data Book release).
The IRS says returns may be selected through random selection and computer screening. The agency compares a return to “norms” for similar returns and also screens amended returns separately. The IRS also notes that a refund claim is not necessarily an audit trigger on its own (IRS audits).
That often means the issue is less about one dramatic red flag and more about whether a line item, deduction, credit, business loss, or income figure appears unusual compared with similar filings. In practical terms, audits often focus on documentation: whether the taxpayer can support what was reported.
This is one reason the early stage of an examination matters so much. A narrow inquiry can stay narrow, but some examinations may expand to other years or related returns. The IRS says that in certain audits, including correspondence audits, the review may be expanded to include prior and subsequent years and related returns (IRS review of requested items in audits).
One point the IRS states very clearly: the IRS initiates an audit by mail, not by phone (IRS audits). That matters because scam callers often claim to be from the IRS and try to create panic.
The first notice usually identifies the tax year under review, the items being examined, and the next step in the process. Depending on the type of audit, the notice may ask for specific documents, request a questionnaire, or schedule an in-person meeting. The IRS also says that if an audit is conducted by mail, it may require the taxpayer to complete a questionnaire in addition to sending records (Audits Records Request).
For beginners, it helps to think of audits in two broad categories: mail audits and in-person audits.
A correspondence audit is handled through the mail. The IRS asks for documents supporting certain items on the return, and the taxpayer responds by sending copies. These audits often involve narrower issues, like proof of deductions, substantiation for credits, or confirmation of income items. The IRS notes that in a mail audit, it may also request a completed questionnaire (Audits Records Request).