Going through an IRS audit can be a stressful and complex situation. You will certainly be interested in getting through it as quickly as you can, which is why it’s often important to work with an experienced law firm, especially if you have not been through an audit before.d
But exactly how long should you expect it to take? The IRS admits that there is no standard timeframe. The length varies from one case to the next, depending on a wide range of details. By analyzing these, you can sometimes predict how long your specific audit may take.
Do you disagree with the findings?
For one thing, whether or not you agree or disagree with the IRS can impact the process. Say that the IRS claims that you have intentionally underpaid your taxes, so you’re going to be fined, and you have to pay the back taxes. If you disagree, this can make the process take longer, especially if you appeal the decision.
How complex are the issues?
You also have to consider the type of audit and the overall complexity. Are you facing an audit as a business owner who has millions of dollars in transactions to consider, or are you facing an audit as an individual who simply has one source of income?
The availability of the necessary information
Documentation is a very important part of an audit. For instance, the IRS may want to see the financial statements, bank statements, pay stubs, and other financial details from your company when conducting an audit. How quickly you can gather this documentation and present it to the IRS will have a big impact on how quickly you move through the case. Preparing in advance for the audit can help to expedite the process.
No matter how long the audit is going to take, the most important thing is that you understand exactly what legal rights and options you have at this time.