IRS Tax Audit: What Bakersfield Taxpayers Should Expect and How to Prepare

An IRS audit notice can arrive with little warning and create immediate stress. For taxpayers in Bakersfield, the first questions are usually the same: why was my return selected, what records do I need, and how much time do I have to respond? The IRS closed 497,621 tax return audits in fiscal year 2025 and recommended $26.8 billion in additional tax as a result. Those numbers show that examinations take place in large numbers every year, which means preparation matters long before a notice ever arrives.

What Is an IRS Audit?

An IRS audit, also called an examination, is a review of an individual's or organization's books, accounts, and financial records. The goal is to verify that the information reported on a tax return is accurate, including the income you reported and the credits and deductions you claimed. Audits are not all the same. Some examinations focus on a single issue, while others take a broader look at an entire return. Understanding what the IRS is reviewing is the first step in building a proper response.

An audit is not an accusation, and it is not the same as a criminal tax investigation. The IRS selects returns for a variety of reasons, and being selected does not mean the agency has already decided that you made an error. It does mean the IRS wants to confirm the figures on your return with supporting documentation.

Why Does the IRS Select Certain Returns for Audit?

According to the Taxpayer Advocate Service, if the IRS selects your tax return for audit, it does not automatically mean something is wrong. Returns can be chosen through different screening methods, and an audit notice is simply a notification that your return will be reviewed. Even so, certain patterns are known to bring returns under closer scrutiny.

Common Audit Red Flags

Several issues are frequently cited as audit triggers. Knowing them can help you avoid mistakes on returns you file in the future.

Not reporting all of your income. This is one of the most common audit triggers, and it can happen when income is overlooked or reported in the wrong place.
Claiming business expenses that are not tax deductible. Deductions must be legitimate and properly supported, and expenses that do not qualify can raise questions about the rest of the return.
Preventable mistakes. A number of tax audits result from avoidable errors, such as inconsistent figures or items that do not match other parts of the return.

How Does the IRS Conduct an Audit?

The IRS performs audits by mail or in person. The notice you receive will include specific information about why your return is being examined, what documents, if any, the IRS needs from you, and how you should proceed. The format of the audit affects the way you prepare and respond.

Audits by Mail

In a mail audit, the IRS sends written requests for documentation and conducts the review through correspondence. This format is often used for more limited examinations. Taxpayers who receive this type of request should respond by the stated deadline and should keep copies of every document they send. A complete and organized response can help the examination move forward without unnecessary delay.

Audits in Person

In an in-person audit, you sit down with an IRS examiner to go over the items identified in the notice. The examiner may review your records during the meeting and can ask follow-up questions about specific entries on the return. In-person audits generally require more preparation because the discussion can range beyond the documents you initially submitted.

What Documents Will the IRS Request?

During an audit, the IRS will ask you to present documents that support the income, credits, or deductions you claimed on your return. The specific list of requested items depends on what is being examined. In many cases, the IRS will ask for the records that were used to prepare the return, along with documentation that supports the particular numbers under review.

Organizing those records before the audit begins can make the process less stressful. Taxpayers should gather the requested documents in a logical order, make copies for their own files, and focus on the specific items the IRS identified. If you are unsure whether a document is relevant, ask the examiner or speak with a tax professional before submitting anything extra.

How Long Does the IRS Have to Audit Your Return?

After you file a return, the IRS usually has three years from that point to start and finish an audit. The clock generally begins when the return is filed, not when the tax year ends. Most examinations begin within that three-year window, although complex cases can take longer to complete. The notice you receive will identify the tax year under review and will tell you what the IRS needs from you.

What Happens After the Audit Is Complete?

Once the IRS completes an examination, it may accept the return as filed, or it may propose changes to the amount of tax you owe. If the IRS proposes changes and you disagree, you do not have to simply accept the result. The findings can be disputed through the IRS's administrative processes, which is one reason the guidance of an experienced tax professional can be valuable at this stage.

The scale of audit activity is significant. In fiscal year 2025, the IRS closed 497,621 tax return audits and recommended $26.8 billion in additional tax. Even a single adjustment can create a meaningful financial burden for an individual or small business, and the amount at stake can grow when the IRS identifies issues across multiple tax years.

How Should Bakersfield Taxpayers Prepare for an IRS Audit?

Preparation starts with the notice itself. Read every part of the letter so you understand the tax year at issue, the reason for the examination, and the deadline for responding. From there, follow a clear and organized process.

Pull the records that relate directly to the items the IRS listed. If the audit involves a business, include the documentation behind the revenue and expenses on the return.
Respond on time. Missing a deadline does not make an audit go away, and it can limit your ability to present your side of the case.
Organize documents in the order the IRS requested them and label everything clearly.
Keep copies of all correspondence, including anything you send to the IRS.

Bakersfield taxpayers who run their own businesses, have multiple sources of income, or claimed significant deductions should expect those areas to receive close attention. A clean set of records is the strongest tool you can have during an examination.

When Is It Time to Call a Tax Attorney?

Not every IRS audit requires legal representation. For a straightforward mail audit with clear and complete records, a taxpayer may be able to respond directly. But certain situations call for professional help, including audits that involve a business, complex deductions, multiple tax years, incomplete records, or a significant amount of potential additional tax.

A tax controversy attorney can handle communications with the IRS, help prepare you for meetings, and make sure your documentation is presented accurately. For taxpayers in Bakersfield and the surrounding Kern County area, working with a professional who focuses on tax disputes means the audit is managed by someone who understands the procedure and the stakes. Getting help early in the process gives you more options than waiting until the IRS has proposed a final adjustment.

Frequently Asked Questions

What triggers an IRS tax audit?

The IRS selects returns through several screening methods, and an audit does not necessarily mean you did something wrong. Common triggers include not reporting all of your income and claiming business expenses that are not tax deductible. Many audits also result from preventable mistakes on the return. The notice you receive will explain why your specific return is being examined.

How long does the IRS have to audit my tax return?

After you file a return, the IRS usually has three years from that date to start and finish an audit. The clock begins when the return is filed, and the IRS can examine the return at any point during that period. The audit notice will identify the tax year under review and will state what the IRS needs from you and how to respond.

What records should I gather for an IRS audit?

The IRS will ask you to present documents that support the income, credits, or deductions you claimed on your return. The specific list depends on what is being examined. Gather the records used to prepare the return, organize them in the order requested, and keep copies of everything you send to the IRS.

Should I hire an attorney if the IRS is auditing me?

Some audits are straightforward and can be handled by responding directly to the IRS. An attorney becomes especially useful when the audit involves a business, multiple tax years, incomplete records, or a significant amount of additional tax. A tax controversy attorney can manage communications with the IRS and protect your rights if the agency proposes changes you disagree with.