How Long Does an IRS Tax Audit Take?
IRS tax audits can be daunting and can be unpredictable. An IRS tax audit can be initiated at any time for both individual or business tax filings and can last up to 26 months after a filing. Tax audits can take a lot of time and can affect your tax balance or tax refund. The time periods for tax audits can range depending on what kind of audit is being conducted.
Tax Audit Types and Timing
Typically, a tax audit begins between 7 months to one year after taxes are filed and can last for 3 months to 1 year before the case is closed. Factors that influence the IRS tax audit duration include the type of audit, the accuracy of the answers in response to the audits, the complexity of financial documents requested, whether a business or individual is being audited, and the caseload of the auditor assigned to each audit. Due to audits occurring after taxes are filed and the range of duration being different under the circumstances, the taxpayer may still receive a tax refund from their filing but may be required to pay back any differences after an audit has closed. It is imperative that the taxpayer be responsive, prepared, and aware of what an outcome could be in case the IRS conducts an audit.
Correspondence Audit
A correspondence audit is conducted entirely by mail in which the IRS will send questions to the address listed on the return and requires the taxpayer to respond with clear and detailed answers. A correspondence audit generally begins within 7 months of a tax filing and ends 3-6 months after it begins so long as the taxpayer complies with the applicable due dates and requests.
Office Audit
An office audit requires the taxpayer to bring documents to the local IRS office and requires the taxpayer to answer and comply with questions at the office. An office audit generally begins within 1 year of a tax filing and ends 3-6 months after it begins so long as the taxpayer complies with the applicable due dates and requests.
Field Audit
A field audit is the most involved type of audit in which the IRS agents will arrive to personally investigate your records. This type of audit is commonly conducted on small businesses. This type of audit generally begins within 1 year of a tax filing and ends 1year or longer after it begins. It is imperative that business owners stay up to date with their books and records in case later requested by the IRS.
When to Seek Legal Help for an IRS Tax Audit
If you are currently experiencing an IRS tax audit, it is important to know when to seek legal assistance. In many cases, an audit will confirm details of your filing, and the audit will close with no consequences. However, if your tax auditor determines that your filing may be inaccurate and wants to enact penalties or even criminal prosecution, being prepared with a legal defense or knowing what to do in a situation like this is crucial. An experienced tax lawyer can help you appeal the decision, provide complete documentation of your finances, and prepare next year’s taxes to achieve full and inarguable compliance.
Contact Strauss Troy Attorneys for Your Tax Audit Legal Services
Facing an IRS tax audit can be an uncomfortable and frustrating experience, even if your books and finances are in good order. Strauss Troy Attorneys are here to help you with all your legal needs. Contact our tax planning and compliance department if you have been alerted of an IRS tax audit, if you are facing an unfavorable audit decision, or if you need help ensuring your personal or business taxes are in good legal standing.
.png)