Tax Analysts provides news, analysis, and commentary regarding the Internal Revenue Service, including the conduct of audits. In an audit, an IRS agent, examiner, or auditor reviews one or more tax returns filed by a tax preparer in order to determine the accuracy of the amounts stated and the correctness of the positions taken with regard to each item of income or loss. An examination often involves verifying a taxpayer's receipts and business records.

An IRS audit may involve in-person meetings and inspections, or it can be done entirely via telephonic, electronic, and paper correspondence. Either way, the IRS employs a variety of tools to acquire information with regard to the proper treatment of a taxpayer's tax year. The most informal is an Information Document Request ("IDR"). More formally, the IRS can issue an administrative summons under section 7602.

If the IRS decides that a taxpayer incorrectly determined the amount of tax due, it will send a notice of proposed adjustments; a 30-Day Letter. On receipt, the taxpayer has thirty days to file a protest or internal appeal for review by the Office of Appeals.

The next step is a statutory notice of deficiency; also known as a 90-Day Letter. Under section 6213, a taxpayer has ninety days from receipt of a ninety-day letter to petition the Tax Court.

Though the general statute of limitations on assessments is found in section 6501, the IRS may request an extension using Form 872, "Consent to Extend the Time to Assess Tax."

Tax Analysts provides guidance on audits and assessments, in the form of news stories, documents, and commentary.