Which of the following statements is true about IRS audits?

The statement that audits are a way to confirm the accuracy of tax filings is true because the primary purpose of an IRS audit is indeed to ensure that the information reported on tax returns is correct and conforms to tax laws. Audits are a systematic examination of a taxpayer's accounts and financial information, which helps the IRS verify that taxpayer income, expenses, and deductions are reported accurately.

It is essential to understand the context of audits to fully appreciate this statement. The IRS conducts audits to maintain the integrity of the tax system, deter fraud, and promote compliance. While audits can occur for a variety of reasons, confirming the accuracy of filed returns is a central goal.

In contrast, the other statements do not hold true in the same way. While audits can sometimes happen without prior notice, they are usually preceded by correspondence from the IRS. In addition, audits do regularly involve individual taxpayers, contrary to the notion that they typically avoid them. Lastly, audits focus not only on business tax returns but also on individual tax returns, making the assertion that they only focus on businesses inaccurate.