IRS Business Audits

IRS Definition

The IRS examines (audits) tax returns to verify that the tax reported is correct.

More from H&R Block

The IRS audits business tax returns to make sure that all income, expenses, and credits are reported correctly. The IRS chooses to audit returns that are the most likely to have errors, based on complex criteria. During an audit, the IRS will ask for documents or other proof of the items in question on the return.

The IRS has three years from the date the return is filed to start and finish an audit. Most audits are started within one year of the date the return was filed and take less than a year to complete.

There are three types of audits:

  • Mail audits are usually limited to just one or two issues and are done entirely by mail. This is the most common type of audit.
  • Field audits are conducted by an IRS agent at your business and are more complicated examinations.
  • Office audits are also more complex, and usually take place at an IRS office.

Learn how to handle an IRS audit.

Get help from an expert

Your local H&R Block tax pro can look into your issue and deal with the IRS for you.

Schedule a Free Consultation

Or call 855-536-6504

Related Information

How to Handle an IRS Business Tax Audit

Learn what the IRS is looking for during a business tax audit, the steps you should take to prepare for an IRS audit, and when it's best to get expert help.

How to Address IRS Business Tax Penalties

Understand the most common types of IRS business tax penalties for filing and paying late, and your possible options for requesting IRS penalty relief.

How Long Does the IRS Have to Audit Your Tax Return? There Are Two Answers.

Find out how long the IRS has to audit your return, when most audits normally start, and how to know if you've been selected for audit.

Are IRS Mail Audits Really Something to Worry About?

Get the facts about IRS mail audits from the tax experts at H&R Block. Learn how to respond and how long you can expect the audit to last.

Don’t Pay an IRS Penalty Without Looking Into Penalty Relief

The IRS grants four types of penalty relief, but many taxpayers don't ever ask. Learn how to request penalty abatement from the IRS.

How Long Does It Take? IRS Audit

How long you can expect your IRS audit to last depends on the type of audit and the scope. Learn how to efficiently wrap up an audit from the tax experts at H&R Block.