Tax returns are selected for review by the IRS (.gov) primarily due to automated, computer-based screenings (DIF scores) that identify inconsistencies, such as mismatches between W-2/1099 forms and reported income, high deductions relative to income, or random sampling. It does not necessarily indicate errors or fraud.
The IRS selects returns for review using various methods; including random sampling, computerized screening, and comparison of information received by the IRS such as Forms W-2 and 1099. Having your return selected for review does not suggest that you made an error or were dishonest.
Why is my return being reviewed? We select some returns to review so we can determine whether income, expenses, and credits are reported correctly. This doesn't mean you made an error or were dishonest.
You may face an IRS audit after an IRS review. If the IRS reviews your information and detects inaccuracies in your tax returns, it may conduct a comprehensive audit to look into the matter further.
The IRS has no maximum time limit when it comes to processing tax refunds, but after 45 days, it is required to pay interest on your refund. In most cases, you can expect the IRS to issue your tax refund within 21 days of filing your tax return.
The percentage of individual tax returns that are selected for an IRS audit is relatively small. From 2020-2023, less than 0.50% of individual returns were selected for audits — the lowest of any published audit rate since 1950.
Employees will review and either manually release the refund or confirm the error. If an error is confirmed, a notice will be sent to the taxpayer either requesting additional information or informing the taxpayer the error has been corrected through the IRS's math error authority.
IRS personnel screen the highest-scoring returns, selecting some for audit and identifying the items on these returns that are most likely to need review. Large Corporations – The IRS examines many large corporate returns annually.
Errors on or Incomplete Tax Returns: Your refund may be delayed for something as simple as a forgotten signature, mathematical errors or if the income reported by you doesn't match what your employer or other third-party payers have reported.
– Receiving a paper refund check in the mail may take longer than choosing direct deposit. Most e-filed returns are processed within 21 days. – Paper-filed returns generally take 6 to 8 weeks for the IRS to process and send your refund.
A review does not automatically mean you are being audited. The IRS may only want to verify some details. If concerns persist, they might request more information. Most reviews end without a full audit.
A request for expedited processing must be made in writing and must fully explain the compelling reason. Granting expedited processing is at the discretion of the IRS.
Some tax returns need extra review for accuracy, completeness, and to protect taxpayers from fraud and identity theft. Returns that fall into this category can take longer to process. Disaster-related returns may take longer to process than tax returns not claiming disaster relief.
If the IRS is reviewing your return, it may have questions about your wages and withholding, or credits or expenses shown on your tax return. The review process could take anywhere from 45 to 180 days, depending on the number and types of issues the IRS is reviewing.
You know the IRS might be investigating you through official mail (first contact), phone calls (often with automated messages to IRS.gov), or in-person visits, but signs of a criminal probe include contact with IRS Criminal Investigation (CI) agents, subpoenas to you or your bank, questions to your accountant/bank, unusual account activity (freezing/refusing transactions), or agents suddenly going silent after an audit. Key indicators are official IRS letters, contact from CI special agents, third-party inquiries, and formal summonses for records, signaling serious scrutiny beyond a simple audit.
The IRS randomly selects a small percentage of tax returns each year to audit, just to ensure overall compliance. Computer screening. The IRS uses computer programs to score tax returns based on a variety of factors. Returns with high scores are more likely to be audited.
What happens during an audit? Internal audit conducts assurance audits through a five-phase process which includes selection, planning, conducting fieldwork, reporting results, and following up on corrective action plans.
Large deductions or credits: Unusually high deductions or tax credits compared to your income can raise red flags. Random selection: Sometimes, returns are selected for review as part of the IRS's routine checks. Prior issues: Previous issues or audits can lead to increased scrutiny in subsequent years.
Once the IRS completes the examination, it may accept your return as filed or propose changes. These changes may affect the amount of tax you owe or the amount of your refund.
How far back can the IRS go to audit my return? Generally, the IRS can include returns filed within the last three years in an audit. If we identify a substantial error, we may add additional years. We usually don't go back more than the last six years.
Common IRS audit triggers
Errors in your tax return calculations can cause delays as the IRS may need to correct them. A mismatch between your Social Security Number and the records can significantly delay your refund. Filing your tax return too early or too late can lead to delays due to IRS system updates or high processing volumes.