The primary objective of a tax audit is to verify that taxpayers have complied with all applicable tax laws and regulations.

The Internal Revenue Service (IRS) is the federal agency responsible for administering and enforcing the internal revenue laws of the United States.

The two main types of tax audits are field audits, which are conducted at the taxpayer's business premises, and office audits, which are conducted at the IRS office.

A tax audit focuses on compliance with tax laws, while a financial audit focuses on the accuracy of financial statements. A tax audit is conducted by the IRS, while a financial audit is conducted by an independent auditor. A tax audit is mandatory, while a financial audit is voluntary.

Taxpayers may be selected for a tax audit for various reasons, including high income or significant deductions, inconsistent or incomplete tax returns, prior audit history or related-party transactions, or random selection or specific criteria.

A tax audit may result in additional taxes and penalties, interest on unpaid taxes, criminal prosecution, or a combination of these consequences.

Taxpayers can reduce the risk of being audited by keeping accurate and complete records, filing tax returns on time, using qualified tax professionals, and avoiding aggressive tax positions.

Taxpayers have the right to representation, the right to examine audit reports, and the responsibility to provide requested documents during a tax audit.

Taxpayers can appeal the results of a tax audit by filing an amended tax return, requesting a conference with the IRS, or filing a petition with the U.S. Tax Court.

Common mistakes that taxpayers make during a tax audit include not keeping accurate and complete records, filing tax returns late or incorrectly, and not responding to IRS inquiries.

Best practices for taxpayers to follow during a tax audit include cooperating with the IRS, providing accurate and complete information, and seeking professional advice if needed.

A tax audit can provide taxpayers with the opportunity to identify errors and make corrections, obtain a refund or reduce tax liability, and improve compliance with tax laws.

Common misconceptions about tax audits include the belief that they are only for high-income taxpayers, that they are always conducted in person, and that they are always adversarial.

Taxpayers can prepare for a tax audit by gathering all relevant documents, reviewing tax laws and regulations, and consulting with a tax professional.

Taxpayers who are facing a tax audit can find resources on the IRS website, from the Taxpayer Advocate, and from professional tax organizations.