Can You Get Audited After Your Return Is Accepted?

Receiving notification that your tax return has been accepted by the IRS is a standard part of the filing process. However, this initial confirmation does not mean your return is immune from further review or a potential audit. The acceptance is merely the first step, indicating the return has passed a basic automated screening.

The Meaning of an Accepted Tax Return

An “accepted” tax return signifies that your filing has passed a preliminary, automated check by IRS computer systems. This screening verifies basic requirements, such as matching your name and Social Security number to IRS records, and performs simple mathematical checks for obvious errors.

This acceptance should not be confused with an “approved” status, a term associated with refunds. An approved return means the IRS has processed it and scheduled any refund payment. Even after a refund is issued, the return is not shielded from a future audit, as both are procedural steps that happen before any substantive review.

The IRS Audit Selection Process

The selection of a tax return for an audit is a separate process from the initial acceptance. The IRS uses several methods to flag returns for examination.

• The primary tool is a computer system known as the Discriminant Information Function (DIF). This program assigns a numeric score to every return based on a proprietary formula, with the score representing the potential for errors when compared to national norms. A higher DIF score increases the likelihood that a return will be flagged for human review.
• An automated document matching program compares information from third parties, like Form W-2s and Form 1099s, against the income you report on your Form 1040. A discrepancy can trigger an examination.
• Some returns are selected through random sampling as part of the National Research Program, which helps the IRS update its DIF formulas and understand compliance trends.
• An audit can be initiated if your return is connected to another taxpayer who is currently under examination, such as a business partner or an ex-spouse.

Types of Audits and General Timelines

The most common examination is a correspondence audit, which is conducted entirely by mail. You will receive a letter from the IRS requesting documentation for specific deductions or credits and will respond by mailing the requested records. These audits are limited in scope and focus on just a few items on the return.

A more involved examination is an office audit, where you bring your records to a local IRS office to meet with an examiner. These audits are broader and may cover multiple areas of your return. The most comprehensive type is a field audit, where an IRS agent conducts the examination at your home, place of business, or accountant’s office. Field audits are reserved for complex returns and involve a thorough review of your financial records.

The IRS generally has a specific timeframe to initiate an audit, defined by the statute of limitations. For most returns, the IRS has three years from the date you filed your return or the return’s due date, whichever is later, to begin an audit. This period extends to six years if you have substantially understated your gross income, which is generally defined as omitting more than 25% of your gross income. In cases of a fraudulent return or failure to file, there is no statute of limitations, allowing the IRS to initiate an audit at any time.