What's the Difference Between a Tax Audit and a Tax Examination?

The IRS uses the word examination rather than audit in its official communications, but the two terms refer to the same thing — a review of your tax return to verify that the information is accurate and complete. There are three types of IRS examinations: a correspondence audit, which is conducted by mail and is the most common; an office audit, where you meet with an IRS agent at a local IRS office; and a field audit, where an IRS agent comes to your home or business. Most IRS audits are correspondence audits focused on a specific item, such as a deduction or credit, and can often be resolved by simply sending documentation. The IRS typically has three years from the date you filed to audit your return, though this extends to six years if you underreported income by more than 25%, and there's no time limit for fraud.