What to do in an IRS Audit
A return can be picked up for audit for many reasons. If the return is not correctly filled up and excess tax relief is claimed, the IRS is bound to take up the issue with the tax payer. Sometimes the information given in the return may not match with the information returns filed by other persons with the IRS.
For instance, information given in the Form W-2 filed with the employer may not tally with the return filed by the employee leading to examination of the employee's return.
There is a risk management mechanism in place in the tax office with certain objective criteria for selection of returns for audit. The criteria may change from year to year. [...]