Definition– an audit occurs when the IRS decides to examine your tax return more closely to verify that your income and deductions are accurate. A tax return is generally selected for an audit when something entered on the return is out of the ordinary.
What It Really Means
A tax audit is when the IRS decided to take a closer look at your tax return, because something seems off in their opinion.
Bob submits his tax return in which he claimed $10,000 in charitable deductions. The IRS then sends a letter requesting proof of Bob’s donation amount.