What Happens During an IRS Audit? Step-by-Step Process and Your Rights

Last updated 09/16/2025 by

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Summary:

Quick answer: An IRS audit begins with a notice, followed by document requests, interviews, and findings. Most audits are handled by mail, but some require in-person meetings. You can agree with the results, appeal, or request reconsideration. If taxes are assessed, expect balance-due notices like CP14 and follow-ups such as CP501 and CP503.

IRS audits don’t have to be mysterious. Whether your case is a simple correspondence audit or an in-depth field visit, the process follows predictable steps. Knowing what to expect can help you stay calm, prepared, and in control.

Audit process at a glance

Notice: You’ll receive an official IRS letter—not a phone call—identifying the issue.
Document request: The IRS asks for records such as receipts, statements, mileage logs, or contracts.
Review/meeting: In a correspondence audit, you mail documents. In an office or field audit, you meet an IRS agent.
Findings: The IRS issues a report with proposed changes (or no changes).
Resolution: You agree and pay, set up an Installment Agreement, or appeal.

Types of IRS audits

Correspondence audit: By mail; often resolved quickly with documentation.
Office audit: Requires meeting at an IRS office to review specific issues.
Field audit: Revenue agents visit your home or business; these are the most comprehensive audits.

Your rights during an audit

The IRS must follow the Taxpayer Bill of Rights, which guarantees:

The right to professional and courteous treatment.
The right to know why the IRS is asking for information.
The right to representation by an attorney, CPA, or enrolled agent.
The right to appeal disagreements within the IRS or in court.

Typical IRS notices during an audit

CP11 — Math error resulting in a balance due.
CP12 — Adjustment resulting in a refund or zero balance.
CP14 — First balance-due notice.
CP501, CP503, CP504 — Escalating collection notices if balance remains unpaid.

Audit outcomes

Outcome	What It Means	Next Steps
No change	IRS accepts your return as filed	Audit closed, no further action
Agreed change	You accept IRS adjustments	Pay balance or set up a payment plan
Disagreed change	You dispute IRS findings	File an appeal with the IRS Office of Appeals

Real-life scenarios

Correspondence audit resolved: A taxpayer received a CP12 notice for a credit adjustment. After mailing bank records, the IRS accepted the return.
Office audit: A freelancer reviewed business expenses in person. Some deductions were reduced, but penalties were avoided after providing logs and receipts.
Field audit: A small business faced a full review. With CPA representation, the IRS accepted most deductions and allowed a payment plan for the balance.

Next Steps

Start with our guide on how to talk to the IRS for tips on timing, scripts, and tone.
If you receive a balance-due notice like CP14, review repayment options such as an Installment Agreement or an Offer in Compromise.
Need more background? Compare IRS tax levies vs liens to see what enforcement actions the IRS can take if balances remain unpaid.
For future returns, minimize audit risk by learning what triggers an IRS audit and how to avoid common red flags.

Core Takeaways

IRS audits always begin with a written notice, not a phone call.
Most audits are correspondence audits resolved by mail.
You have the right to representation and appeal.
Audit results can be no change, agreed changes, or disagreed changes requiring appeal.

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Related Guides

What Is an IRS Audit? — Overview of the audit process.
What Triggers an IRS Audit? — Red flags that raise IRS scrutiny.
How Far Back Can the IRS Audit You? — Statute of limitations explained.
IRS Penalty Abatement Programs — Relief if penalties are assessed.
CP14 Notice — First balance-due letter explained.

Frequently Asked Questions

How will I know if I’m being audited?

You’ll receive a written notice (never a phone call or email) explaining the issue and what the IRS needs.

How long does an IRS audit take?

Correspondence audits may resolve in a few months. Office and field audits can last 6 months to a year or more.

What if I disagree with the audit results?

You can appeal to the IRS Office of Appeals. If unsuccessful, you may take your case to U.S. Tax Court.

Do all audits result in additional taxes?

No. Many audits end in “no change” if your documentation supports the return as filed.

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