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Preparing for an IRS audit

On Behalf of | Aug 8, 2023 | Tax Law

Being audited by the Internal Revenue Service (IRS) can feel overwhelming. However, you may not need to be worried, as the department may select you for an audit randomly or when your returns involve issues or transactions with other taxpayers, such as your business partner.

The IRS will notify you of the audit by mail. Here is what to do when you receive the notification:

Read the letter thoroughly

The letter you receive from the IRS will have in-depth information about the audit, including instructions and contact information. If the IRS wishes to conduct the audit by mail, the letter will include the additional information you should provide about certain items, including your income and expenses.

If you want an in-person interview, perhaps you have too many documents to mail, you can inform the IRS using the provided contact details.

Request more time to respond

If you need more time to gather the required documentation, request the IRS to grant you an extension. The letter you receive will have a number to fax your written request. You can also mail your request to the address included in the letter. 

The IRS may grant you a one-time 30-day extension, or they may be unable to do so.

If you want an in-person interview, contact the auditor assigned to your case to request an extension. 

Organize your documents

You should organize the paperwork the IRS requires, possibly in a folder. If you are mailing them, make sure you submit all documents. If you are attending an in-person interview, confirm you have brought everything you need. Your audit can be more manageable if you have all the information requested.

If you receive an IRS audit notification, consider getting legal help to understand the steps to take.