Getting a letter saying you’ve been selected for an “examination” is alarming. But the word “audit” covers three very different experiences — and knowing which type you’re dealing with is the first step to responding correctly.
Type 1: Correspondence audit (most common)
The vast majority of IRS audits are correspondence audits — handled entirely by mail, with no in-person meeting required. The IRS sends a letter asking you to verify or explain a specific item on your return, such as a charitable deduction, business expenses, or income that doesn’t match third-party reports.
What to expect: A letter identifying the specific issue. You respond by mail with documentation. The IRS reviews it and either closes the case or proposes an adjustment.
Who gets these: Anyone. They’re triggered by the IRS’s automated systems flagging something unusual — a large deduction relative to income, missing income that a 1099 reported, or a credit that triggered a review.
Type 2: Office audit
An office audit requires you to visit an IRS Taxpayer Assistance Center to meet with an examiner. The IRS will send you a letter specifying which items they want to examine and what records to bring.
What to expect: A scheduled appointment, usually 1-3 hours. You’ll bring physical documentation — receipts, bank statements, mileage logs — for the specific items under review. The examiner may ask follow-up questions.
Who gets these: Often self-employed filers with significant business deductions, or individuals with more complex returns where the IRS wants face-to-face clarification.
Type 3: Field audit (the serious one)
A field audit is the most comprehensive type. An IRS Revenue Agent visits your home, business, or your accountant’s office to examine your records. These are typically reserved for businesses, high-income individuals, or cases with complex financial structures.
What to expect: Multiple visits over days or weeks. The agent will review all financial records related to your return — books, bank statements, invoices, contracts. Field audits often expand in scope as they proceed.
If you receive a field audit notice
Get professional representation immediately — a CPA, enrolled agent, or tax attorney. You have the right to have a representative present, and for field audits, this is strongly advisable. You should not face an IRS Revenue Agent alone without professional guidance.
What triggers an audit?
The IRS uses a scoring system called the Discriminant Information Function (DIF) to flag returns for review. Common triggers include:
- Large charitable donations relative to income
- High business expense deductions on Schedule C
- Home office deduction (especially for employees)
- Rental property losses
- Income that doesn’t match third-party reports
- Prior audit history
- Cash-intensive businesses
Your rights during an audit
The IRS Taxpayer Bill of Rights gives you important protections:
- The right to professional representation (you can bring a CPA or attorney)
- The right to record the interview
- The right to request a supervisor if you believe an examiner is behaving improperly
- The right to appeal any proposed changes
- The right to only provide records relevant to the specific items under examination