A tax audit is a review conducted by a government agency, such as the Internal Revenue Service (IRS) in the United States, to verify the accuracy of a taxpayer's financial information. During an audit, the agency examines records, receipts, and other documents to ensure that income, deductions, and credits reported on a tax return are correct. Tax audits can be triggered by various factors, including discrepancies in reported income or random selection. They can be conducted through mail or in-person meetings. The outcome may result in a refund, additional taxes owed, or penalties if discrepancies are found.