IRS Audit Rights
About this article
Reviewed by the Commoner Law Editorial Team. Sourced from primary statutes (U.S. Code, CFR, state compiled statutes) and official government agency guidance. Written in plain language for general understanding — this is educational content, not legal advice. Our editorial standards
What is this right?
An audit letter in the mailbox is one of the more visceral experiences in American adult life, but most audits are routine civil matters about whether the math on a return holds up. Roughly three-quarters of IRS examinations are correspondence audits — done entirely by mail, no in-person meeting. The rest are office audits at an IRS location or, much more rarely, field audits at your home or business.
The Taxpayer Bill of Rights at § 7803(a)(3) guarantees the basics: you have the right to know why the IRS is asking, the right to bring an enrolled agent, CPA, or tax attorney, and the right to appeal anything they decide. An audit does not mean you did anything wrong. Returns get pulled for random selection, statistical scoring (the IRS's DIF score), 1099/W-2 mismatches, or because something on a related return triggered a flag.
When does it apply?
Your audit rights apply when:
- You get a letter from the IRS saying your return is being examined.
- The IRS requests documentation or information about your return.
- You're selected for a correspondence audit, office audit, or field audit.
Three myths:
- "An audit means jail." No. The vast majority are civil matters about how much tax you owe. Criminal prosecution requires willful intent to defraud and is statistically rare.
- "I have to answer every question." You can have a tax professional present, and you can decline to answer questions outside the scope of the items being examined. The IRS's authority under §§ 7601–7613 is broad but not unlimited.
- "They can audit any year they want." Three years from filing is the general rule. Six if you omitted 25%+ of gross income. Unlimited for fraud or unfiled returns.
What to Do If the IRS Is Auditing You
Step 1: Read the letter slowly. The notice tells you which year is being examined, which line items they're asking about, and exactly what they want. Audits are narrow — answer to the scope, not to your whole tax life.
Step 2: Get representation. Enrolled agents, CPAs, or tax attorneys can speak to the IRS for you. § 7521 gives you the right to be represented and the right to record interviews after 10 days' notice. You don't have to face an IRS examiner alone.
Step 3: Gather records. Organize the documents on the line items they asked about — receipts, bank statements, mileage logs, charitable contribution acknowledgments. Make copies. Never send originals.
Step 4: Respond by the deadline. Silence is the worst answer. Ignored audits become default assessments — the IRS makes the math up and bills you.
Step 5: Appeal if needed. If you disagree with the audit results, file a written appeal within 30 days of the audit report. The Independent Office of Appeals has its own officers, and they regularly settle cases the examiners wouldn't.
What should you NOT do?
Don't ignore the notice. Ignored becomes default assessment. The IRS picks the numbers and they pick to their advantage.
Don't volunteer extra information. Answer what's asked, send what's requested. Nothing more. Volunteering opens new lines of inquiry that weren't on their radar.
Don't lie or fabricate documents. A civil audit becomes a criminal investigation the moment falsified records show up. § 7206 covers tax perjury — felony, up to three years.
Don't agree to extend the statute of limitations on a Form 872 without talking to a tax professional first. The IRS often asks for an extension when their three-year window is closing. You can refuse, and sometimes refusing is the right move.
How California differs from federal law
California's Franchise Tax Board (FTB) conducts separate state audits with its own rules:
- FTB audit authority: The FTB can audit California income tax returns independently from the IRS. A federal audit often triggers a state audit.
- Statute of limitations: California generally has 4 years to audit a return (vs. 3 years for the IRS). If you underreport income by 25%+, the statute extends to 6 years.
- Taxpayer Rights Advocate: California has its own Taxpayer Rights Advocate within the FTB, similar to the federal Taxpayer Advocate Service.
- Reporting requirement: If your federal return is adjusted by the IRS, you must report the changes to the FTB within 6 months (Revenue and Taxation Code § 18622).
Additional Steps in California
Contact the FTB at (800) 852-5711. File state appeals with the California Office of Tax Appeals (OTA) at ota.ca.gov. For representation, contact a California-licensed CPA, enrolled agent, or tax attorney.
Relevant Law: California Revenue and Taxation Code § 19031-19087 (examination), § 18622 (federal change reporting), § 21004-21027 (appeals)
You shouldn't have to hire a lawyer to assert your rights.
Answer a few questions. We generate a personalized letter citing your state's exact statutes, deadlines, and penalties — ready to print and send in minutes.
Lawyers charge $350+. Your letter: $19.
See Your State's Laws
Laws vary by state. Select your state to see how local protections add to or differ from federal law.
IRS Audit Rights in other states
Same topic, different jurisdiction. Pick the one that applies to you.
Legal Resources
We may earn a commission if you use these services — at no extra cost to you. This supports our mission to make legal information free for everyone.