An audit — the IRS calls it an examination — is a review of your return to verify that income, deductions, and credits are correct. Being selected doesn’t mean you’ve done anything wrong; returns are flagged by scoring formulas, document mismatches, and random sampling. What matters is how the examination is handled.

The Taxpayer Bill of Rights guarantees your right to retain representation. When you authorize a representative on Form 2848 (Power of Attorney), an Enrolled Agent, CPA, or attorney can deal with the IRS on your behalf — respond to notices, attend the interview, and present your records — so you’re not answering the examiner’s questions yourself.

Authority to represent
Circular 230; Form 2848 (POA)
Who can represent
Enrolled Agent, CPA, or attorney
Correspondence audit
By mail — most common
Office / field audit
In person; field is most comprehensive
If you disagree
IRS Office of Appeals, then U.S. Tax Court

The three kinds of audit

Not all audits are the same, and the type tells you a lot about the scope:

  • Correspondence audit — conducted entirely by mail, usually about one or two specific items. By far the most common type, and often resolved by sending the right documentation.
  • Office audit — you (or your representative) meet an examiner at an IRS office to review specific issues on the return.
  • Field audit — the most comprehensive: a revenue agent examines records in person, often at a business, and can cover the entire return. This is where representation matters most.

What a representative actually does

A representative controls the flow of information. The examiner’s job is to expand the audit where the records invite questions; a representative’s job is to answer precisely what’s asked, provide substantiation cleanly, and keep the examination from drifting into unrelated years or issues. Because they know how examiners think and what documentation satisfies each issue, a well-run audit is often narrower and shorter than one where an anxious taxpayer over-explains.

If you disagree with the result

An audit that ends with a proposed change isn’t the last word. You can request a conference with the IRS Office of Appeals, an independent body whose mission is to resolve disputes without litigation. If Appeals doesn’t resolve it, you can petition the U.S. Tax Court — generally without paying the disputed tax first. Many proposed adjustments are reduced or eliminated at the appeals stage.

The link to penalties and collection

Audits and collection are connected. An examination that increases your tax often adds accuracy-related penalties and interest — and if you can’t pay the resulting balance, you’re back in collection territory: payment plans, offers, or hardship status. Handling the audit well limits the assessment; handling the aftermath well determines how you pay it. The two are best managed together.