Audits may be conducted by mail or in person. You might be asked about specific things the auditor wants to have addressed, or the IRS may do an in-depth examination of your business, which could include reviewing how you classify employees, interviewing employees, and looking at several years of payroll records and tax filings to discover whether you were compliant. The audit will conclude with no change to tax liability, meaning all the issues were addressed to the auditor’s satisfaction, or with a change you agree to or a disputed change. If you dispute the change, you may be able to file an appeal.