What is an IRS audit?
The IRS may choose to review a taxpayer’s accounts and financial information to ensure all tax laws are being followed. Even though the IRS only audited 0.3% of individual income tax returns in 2020, many taxpayers live in fear of a letter from the IRS questioning items on their return. “Taxpayers worried about the possibility of facing an IRS audit may hesitate to claim all the tax breaks they are entitled to claim,” says Kathy Pickering, chief tax officer at H&R Block. “When they do this, they are leaving their money on the table.”
