Legal Definitions - audit of return

An audit of return is a type of tax audit where the Internal Revenue Service (IRS) reviews a taxpayer's return to ensure that it is accurate and complies with tax laws and regulations. This is done by examining the taxpayer's books, vouchers, and records supporting the return.

• Correspondence audit: An IRS audit of a taxpayer's return conducted by mail or telephone.
• Field audit: An IRS audit conducted at the taxpayer's business premises or lawyer's offices.
• Office audit: An IRS audit of a taxpayer's return conducted in the IRS agent's office.

These examples illustrate different types of audits of return that the IRS may conduct. They show that the IRS can conduct audits in different ways, such as through mail, in-person, or at the taxpayer's business premises. The purpose of these audits is to ensure that taxpayers are complying with tax laws and regulations and to identify any errors or discrepancies in their returns.