J.K. Lasser's Your Income Tax 2013: For Preparing Your 2012 Tax Return

48.3 Audit Overview

When you file, the IRS checks your return for computational accuracy and clerical errors, such as a missing signature or missing or inaccurate Social Security numbers. To check whether you have omitted income from your return, the IRS will match your return against the Forms W-2 and Forms 1099 it receives from employers, brokers, payers of interest and dividends, and others who have filed information returns reporting payments to you.

If an error is found, or you have not submitted required attachments, you will probably be advised by mail of the corrections and of additional tax due, or you may be asked to provide additional information to substantiate tax deductions or credits. If you disagree with an IRS assessment of additional tax, you may request an interview or submit additional information. If you file early for 2012, are advised of an error, and the correction is made before April 15, 2013, interest is not charged.

If your refund is selected for a more thorough review, you will be notified by mail. This may not happen for a year or two; see 48.2.

Types of audits.

An examination may be held by correspondence, at a local IRS office, or at the taxpayer’s place of business, office, or home. An examination at an IRS office is called a desk or office examination; an examination at a place of business or home is called a field examination. When you are contacted by the IRS, you should receive an explanation of the examination process.

In a correspondence audit, ...