A Treasury Inspector General of Tax Administration (TIGTA) report suggests the IRS can do a better job by expanding audits to cover multiple years. (TIGTA Ref. No. 2013-30-077, 8/27/13)
Correspondence audits, which encompass 75% of all individual examinations, are usually focused on a narrow issue in one year. TIGTA says the IRS doesn’t always peruse the prior and subsequent years of the taxpayer when an audit results in greater tax liability.