Don’t Panic: What to Do If You Receive an IRS Audit Letter
Opening your mailbox to find a letter from the IRS announcing you're being audited is enough to send anyone into a panic. However, before you jump to worst-case scenarios, take a deep breath. An IRS audit doesn't automatically mean you've done something wrong—it simply means the IRS wants to take a closer look at certain items on your return.
Instead of panicking, take a calm and proactive approach. How you respond can make a huge difference in how smoothly the audit goes and the final outcome.
1. Read the Notice Carefully
The first and most important thing is reading the IRS letter thoroughly. It will tell you why you're being audited, what tax years are involved, and what specific documents or issues the IRS wants to examine. Sometimes, it might be a minor issue like verifying income or deductions. In others, it could involve a more in-depth review.
Pay close attention to any deadlines mentioned. The IRS typically gives you 30 days to respond. Missing this window can escalate the situation and reduce your options.
2. Stay Calm and Organized
Yes, it's stressful—but reacting with panic can lead to hasty decisions. Instead, start gathering the documents related to the items in question. This might include receipts, W-2s, 1099s, bank statements, or records of charitable donations.
Create copies of everything you send to the IRS and keep detailed notes of any phone calls or interactions. Staying organized and professional demonstrates cooperation and responsibility, which can go a long way during the audit process.
3. Don't Ignore the Letter
It may be tempting to put the audit notice aside and hope it goes away, but ignoring it can lead to penalties, interest, or even further legal action. Respond within the given timeframe, even if you're unsure how to proceed. A timely and respectful reply is crucial to keeping the process on track.
4. Avoid Saying Too Much
If you're speaking directly with an IRS agent by phone or in person, be careful not to offer more information than necessary. Stick to what's requested in the notice. Oversharing or volunteering unrelated details could complicate your case.
If you're unsure about what to say or not to say, that's a good sign that you may need professional help.
5. Consult an IRS Tax Attorney
If the audit involves complex tax issues, large sums of money, or any indication of potential fraud or criminal investigation, it's wise to seek legal guidance. A tax attorney specializing in IRS matters can represent you throughout the audit process.
They'll help you understand your rights, ensure appropriate responses, and even communicate directly with the IRS on your behalf. Unlike other tax professionals, your conversations with a tax attorney are protected by attorney-client privilege, offering an added layer of security.
Even if your case seems straightforward, consulting with a tax attorney can provide peace of mind and help you avoid costly mistakes.
6. Respond Promptly and Accurately
Once you've gathered the requested documents and consulted with a professional (if needed), prepare a clear and organized response. If you're mailing documents to the IRS, use certified mail with a return receipt to have proof of delivery.
Being timely and accurate shows that you're taking the process seriously, which may help resolve the audit faster and more favorably.
The Law Offices of Jordan F. Wilcox—We Are IRS Tax Experts
Although receiving an IRS audit notice can be unnerving, it doesn't have to be a disaster. If you're facing tax issues with the IRS, it's essential to seek the help of an experienced IRS tax relief attorney. Contact The Law Offices of Jordan F. Wilcox today to get help with your taxes!
Tax issues don't wait—neither should you. Contact Jordan F. Wilcox for a free consultation!