By Harry Prabandham · Updated September 28, 2026
Tax Planning
IRS Audits: How They Start, How Long the IRS Has, and Your Rights
An IRS audit is a review of a return, usually by mail. The IRS generally has three years to assess more tax, and you can appeal disagreements.
IRS Audits: How They Start, How Long the IRS Has, and Your Rights
1 / 7
What is an IRS audit?
- An audit, or examination, is an IRS review of a return to verify that income, deductions, and credits are reported correctly.
- The IRS begins audits by mail and does not initiate an audit by phone, text, or email.
- Most individual examinations are conducted by mail; others happen at an IRS office or at a home or business.
- Being selected does not mean the IRS has concluded anything was wrong.
Try Our Free Tools
Full Guide
What is an IRS audit?
- An audit, or examination, is an IRS review of a return to verify that income, deductions, and credits are reported correctly.
- The IRS begins audits by mail and does not initiate an audit by phone, text, or email.
- Most individual examinations are conducted by mail; others happen at an IRS office or at a home or business.
- Being selected does not mean the IRS has concluded anything was wrong.
How are returns selected?
- Some returns are chosen by computer scoring that compares them with norms for similar returns.
- Others are selected because third-party documents such as W-2s, 1099s, or K-1s don't match the return.
- Returns can also be selected because they are connected to other audited taxpayers, partnerships, or transactions.
- IRS Data Book statistics show examination rates are highest at the top of the income range.
How long does the IRS have to audit?
- The IRS generally has three years from the later of the filing date or the due date to assess additional tax.
- The period extends to six years if gross income is understated by more than 25%.
- There is no time limit for a fraudulent return or when no return was filed.
- Taxpayers may be asked to sign an extension of the period and can negotiate or decline, with trade-offs either way.
What rights do taxpayers have during an audit?
- The Taxpayer Bill of Rights includes the right to be informed, to challenge the IRS's position, and to appeal in an independent forum.
- Taxpayers can be represented by a CPA, enrolled agent, or attorney using Form 2848.
- Taxpayers can ask why information is requested and how it will be used.
- The Taxpayer Advocate Service is an independent IRS office that helps when normal channels fail.
What are the possible outcomes?
- No change: the IRS accepts the return as filed.
- Agreed: the taxpayer accepts proposed changes and pays any tax, interest, and penalties.
- Disagreed: the taxpayer can request review by the IRS Independent Office of Appeals, usually by filing a protest within the deadline in the letter.
- An audit can also result in a refund if it finds an overpayment.
What happens if the disagreement isn't resolved?
- The IRS issues a notice of deficiency, often called a 90-day letter.
- Taxpayers generally have 90 days, or 150 days if addressed outside the U.S., to petition the U.S. Tax Court without paying first.
- Alternatively, a taxpayer can pay the tax and sue for a refund in federal district court or the Court of Federal Claims.
- Missing the Tax Court deadline generally ends the option to litigate without paying first.
Key takeaways
- Audits start by mail, and many are resolved by correspondence.
- The general assessment period is three years, six for large income omissions, and unlimited for fraud or no return.
- Appeals and Tax Court offer independent review before paying disputed tax.
- Respond by each deadline and consider professional representation; Rubric Advisors does not represent taxpayers before the IRS.
Related Topics
Personal Finance
When to Hire a CPA: Signs Your Taxes Need a Professional
A CPA is often worth it with equity compensation, business or rental income, multiple states, or a major life event. Verify credentials first.
Tax PlanningFiling a Tax Extension: What It Does and Doesn't Do
Form 4868 gives individuals six more months to file, to October 15, but not to pay; tax owed after the April deadline accrues interest and penalties.
Tax Planning529 Plan Tax Strategies: Superfunding, Roth Rollovers, and K-12 Rules
529 earnings are federally tax-free for qualified education costs. In 2026, K-12 withdrawals can reach $20,000 a year; California differs.