Many taxpayers assume that once an IRS audit ends, the matter is permanently behind them. In many cases that is true—but not always. Under certain circumstances, the IRS may reopen a closed examination and request additional information or assess additional tax.
When Can the IRS Reopen an Audit?
The IRS generally will not reopen an examination unless one of the following applies:
There is evidence of fraud or misrepresentation.
Substantial errors are discovered.
New information becomes available that could affect the original findings.
The prior examination involved a clear administrative […]