IRS Tax Audit Guide (2026) - Audit Process & Defense
IRS tax audit guide: audit triggers, process timeline, documentation requirements, and defense strategies. Prepare for potential audit.
Summary
IRS audit rates: 0.2% overall, higher for high income, self-employed, large deductions. Process: correspondence (mail), office (in-person), field (at business). Defense: maintain records 3-7 years, respond timely, hire CPA if complex.
Key Steps
- 1Audit triggers: high income >$200K, self-employment, large deductions, offshore accounts.
- 2Types: correspondence (most common, mail-based), office audit, field audit.
- 3Timeline: initial notice within 3 years of filing, audit process 6-12 months.
- 4Documentation: receipts, bank statements, tax forms, business records 3-7 years.
- 5Defense: respond within 30 days, provide documentation, appeal if needed, hire CPA.