IRS Audit
Definition
An examination of your tax return by the IRS to verify that income, expenses, and credits are reported accurately. Audits can be conducted by mail (correspondence audit), at an IRS office (office audit), or at your home/business (field audit). The IRS generally has three years from the filing date to audit a return, or six years if substantial income is omitted. About 0.4% of returns are audited.
Example
You receive a CP2000 notice (the most common type) because the income reported on your return doesn't match what was reported to the IRS by employers and banks. You have 30 days to respond.