How long does it take for the IRS to conduct a tax audit?

What you’ll discover:

How long does it take for the IRS to conduct an audit?
What takes place during a tax audit?
How can I find out the status of my IRS audit?
Would I still be able to obtain my refund if I am audited?
A Tax and Audit Expert May Assist You During an IRS Tax Audit

It might be frightening to learn that your small company will be subjected to an IRS tax audit. Most business owners in such situation naturally want the audit to be finished as soon as feasible. Understanding what to anticipate might help you handle the uncertainty that the audit process entails.

How long does it take for the IRS to conduct an audit?

There are several sorts of IRS tax audits. The time required to execute an audit varies depending on the underlying factors.

In most circumstances, the IRS completes an audit within a few months to a year after its inception. According to the Internal Revenue Manual, audits must be completed within 26 months of the due date of the tax return or the day it was submitted, whichever is later.

So, don’t expect to be audited right away after you file your taxes. The IRS has a three-year window in which to audit your filed tax returns, but in certain cases, they may go back six years or even longer. Hence, if you submitted your tax return for tax year 2018 on April 15, 2019, the IRS might begin an audit of that return at any time until April 15, 2022.

What takes place during a tax audit?

Audits are often undertaken as “correspondence” audits. In this sort of audit, which normally happens within seven months after filing a tax return, the taxpayer gets a notice from the IRS outlining the questions that must be answered or the material that the taxpayer must provide to the auditor, along with a deadline for replies. This might be as easy as the IRS validating or confirming facts, in which case the audit is virtually done when you answer positively. This sort of examination usually takes six months to complete.

An “office” audit, in which you are required to bring records to an IRS office, is another form of audit. Office audits are typically initiated within a year after submitting a tax return and completed within six months, but this might vary.

A “field” audit entails an auditor visiting your home or office (or that of your tax preparer) to check documents. Field audits typically last one year and entail a more detailed examination of company records for numerous tax years.

How can I find out the status of my IRS audit?

After your tax audit is over, the auditor will officially close it down. Each audit may result in one of three outcomes:

The auditor concludes that the audit revealed no modifications to your previously filed return (s).
The audit contains particular findings, which you understand and agree with.
The auditor suggests adjustments, which you understand but disagree with the conclusions.

Your auditor will be the greatest resource to check on the status of the audit while it is in progress. At the commencement of the audit, the auditor will give you with contact information on the IRS notification letter. If you are unable to reach your auditor, contact an IRS customer service agent at (800) 829-1040 between 7 a.m. and 7 p.m. local time. It is also a good idea to get the auditor’s supervisor’s contact information at the start of the audit. If the auditor becomes unresponsive, you will be able to contact the auditor’s supervisor immediately.

Would I still be able to obtain my refund if I am audited?

In most situations, you will not be notified of a tax audit for many months after filing your tax return. If you were owed a refund when you filed your taxes, you will almost certainly get it before the audit begins. But, it is conceivable that the IRS auditor may later conclude that adjustments to your tax return are required, which might affect the amount of your tax refund. If you obtain a tax refund and an audit subsequently determines that you were not qualified for the full amount, you must return the IRS.

A Tax and Audit Expert May Assist You During an IRS Tax Audit

Whether you got a notice from the IRS concerning a tax audit, or if you are already under audit, having a trusted expert in your corner for audit and tax counsel may be reassuring.