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Employee Tax Expert
posted Mar 28, 2025 10:13:09 AM

All About Tax Audits!

Getting a “love letter” from the IRS can send shivers up your spine. But it’s rarely as bad as we think it is and nothing to fear (unless you’re a criminal, which you aren’t). Most of the time, those IRS letters and notices are only requesting a little clarity for a deduction or notifying you of some missed income. If there’s no fraud, it’s typically only a matter of correcting an oversight. And yes, even the IRS can get it wrong sometimes. 

 

Did you know that most real “audits” are done without us knowing it; and most are completely random? If your return is chosen, an IRS agent manually looks at it and makes a decision as to whether they need more information. If they do send a letter, it’s usually what’s called a “line item” audit. In that case, they just want to verify the accuracy of an entry. Pretty simple - just make sure to respond timely and follow instructions. But before you do, check out the resources below so you fully understand what your letter means and the action you need to take, if any.

 

 

Pro Tip: Always verify letters you receive from the IRS or state taxing authorities are legit before taking action.


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