IRS Audit Help: What to Do When You Get That Letter (And How to Win)
The envelope from the IRS sits on Jennifer's kitchen counter. She's been staring at it for twenty minutes, too nervous to open it. When she finally does, the words "examination of your tax return" jump off the page.
Her hands shake. Her stomach drops. Within minutes, she's Googling "IRS audit" and spiraling into worst-case scenarios: massive penalties, criminal charges, losing her house.
Sound familiar? If you've received an IRS audit notice, you're probably feeling the same panic Jennifer felt. Here’s what she learned from working with our team: most audits are manageable. Many end with little or no extra tax owed. Having the right help makes a big difference.
This guide explains what you need to know about IRS audits in 2026. It covers what triggers audits, the different types, your rights, and how to respond effectively to protect yourself.
Table of Contents:
Understanding IRS Audits: What They Really Are
Types of IRS Examinations You Might Face
What Triggers an IRS Audit in 2026
The IRS Audit Process: Step by Step
Your Rights During an Audit
How to Respond to an IRS Notice
Why Professional Representation Matters
Penalty Abatement: Getting Relief from IRS Penalties
Real Audit Stories: What Actually Happens
Frequently Asked Questions
Understanding IRS Audits: What They Really Are
Let's start by demystifying what an audit actually means. The word "audit" sounds scary, but at its core, it's simply the IRS asking you to prove the numbers on your tax return are correct.
Think of it like this: you told the IRS you earned $80,000, spent $15,000 on business expenses, and therefore owe $X in tax. The IRS is saying, "Show us the receipts. Prove those numbers are real."
It's Not Automatically Bad News
Here's something most people don't realize: getting audited doesn't mean the IRS thinks you're a criminal or that you definitely owe more money. Sometimes audits are completely random. Sometimes they're triggered by statistical anomalies that turn out to be perfectly legitimate.
Our firm has represented dozens of clients through audits. Many walked away owing nothing additional. Some even got refunds because the audit revealed overlooked deductions.
The key is responding properly and having documentation to back up what you claimed.
Audits vs. Notices: Know the Difference
Not every IRS letter is an audit. The IRS sends millions of notices each year for various reasons:
CP2000 Notice - The IRS received information (like a W-2 or 1099) that doesn't match what you reported. This isn't technically an audit—it's a proposed adjustment based on third-party reporting.
Math Error Notice - They found an arithmetic mistake on your return and adjusted it.
Request for Additional Information - They need clarification on something specific but aren't conducting a full examination.
Actual Audit Notice - This uses language like "examination of your return" or "audit" and requests documentation for specific items or your entire return.
Understanding which type of notice you received determines your response strategy.
How Common Are Audits Really?
The audit rate for individual taxpayers hovers around 0.4% in recent years. That means roughly 4 out of every 1,000 returns get examined. Your odds increase if you:
Earn over $200,000 (audit rate closer to 1%)
Claim large deductions relative to income
Report self-employment income
Have international transactions or accounts
But even in higher-risk categories, most returns don't get audited. The IRS simply doesn't have resources to examine everyone.
Types of IRS Examinations You Might Face
Not all audits are created equal. The type of examination determines how intrusive the process will be and how you should prepare.
Correspondence Audit
This is the most common type—about 75% of all audits. The IRS sends a letter asking for documentation on specific items from your return. Everything happens by mail.
Example: The IRS questions the $8,000 in charitable donations you claimed. They want receipts and canceled checks proving those donations.
Timeline: You typically have 30 days to respond with documentation.
Stress level: Low to moderate. You handle it by mail, don't meet anyone, and it's limited to specific line items.
Our role: We gather your documentation, prepare a response letter, and mail everything to the IRS on your behalf. If they come back with more questions, we handle those too.
Office Audit
The IRS asks you to come to their local office and bring specific documents. These are less common than correspondence audits but more intensive.
Example: They want to review all your business expenses for the year. You're scheduled for a meeting at the IRS office.
Timeline: Usually scheduled 2-4 weeks after the initial notice.
Stress level: Moderate. You're sitting across from an IRS agent, but it's still focused on specific items.
Our role: We attend the meeting with you (or instead of you), present your documentation professionally, and answer the agent's questions. Most importantly, we know what information to provide and what to avoid volunteering.
Field Audit
This is the most comprehensive type. An IRS revenue agent comes to your home or business to examine your records in person. Field audits typically involve more complex returns—businesses, high-income individuals, or situations where the IRS suspects significant unreported income.
Example: You own a cash-heavy business like a restaurant. The agent comes to your location, examines your books, possibly observes your operations, and digs deep into your financial records.
Timeline: These can last several months with multiple meetings.
Stress level: High. This is serious and requires professional representation.
Our role: Absolutely essential. We coordinate all meetings, control what information gets shared, handle negotiations, and protect your rights throughout. We never recommend clients handle field audits alone.
Automated Underreporter Program (AUR)
This isn't technically called an audit, but it functions similarly. The IRS automatically matches third-party information (W-2s, 1099s) against your return. If something doesn't match, you get a CP2000 notice proposing additional tax.
Example: Your return shows $45,000 in income, but the IRS received a 1099 showing you earned an additional $10,000 you didn't report.
Timeline: 30 days to respond to the initial notice.
Stress level: Low if the discrepancy is easily explained; moderate if you genuinely missed income.
Our role: We review whether the IRS is correct, prepare an explanation if there's a legitimate reason for the discrepancy, or help you amend your return if you did miss something.
What Triggers an IRS Audit in 2026
The IRS doesn't randomly pull returns out of a hat. They use sophisticated algorithms and specific red flags to select returns for examination. Understanding what catches their attention helps you evaluate your own risk.
The DIF Score
The IRS uses a Discriminant Function System (DIF) to score every tax return. The score measures how much your return deviates from statistical norms for your income level and filing status.
If your deductions are unusually high compared to others in your income bracket, your DIF score increases. High scores flag returns for human review.
You can't see your DIF score, but you can identify items that might raise it.
High-Risk Triggers for 2026
Large charitable deductions - If you earn $80,000 but claim $30,000 in charitable giving, expect questions. The IRS will want documentation proving those donations.
Home office deduction - Claiming home office expenses isn't automatically a problem, but it does increase audit likelihood. The IRS scrutinizes whether the space truly meets the "exclusive and regular use" requirement.
100% business use of vehicle - Claiming a car is used entirely for business (zero personal use) is a red flag. The IRS knows most people use their vehicle for personal errands at least occasionally.
Round numbers everywhere - A return with expenses listed as exactly $5,000, $3,000, $2,000 looks estimated rather than documented. Use actual amounts from receipts.
Cash-intensive businesses - Restaurants, salons, car washes, and other businesses that handle lots of cash face higher scrutiny. The IRS knows cash income is easier to underreport.
Large losses year after year - Reporting business losses for three consecutive years raises questions about whether your activity is actually a business or just a hobby. Hobby losses aren't deductible.
Foreign accounts and transactions - If you have foreign bank accounts or foreign income, you're in a higher-risk category. The IRS has increased international compliance focus.
Substantial income without withholding - Reporting $150,000 in income but only $2,000 in tax paid raises questions about whether you made proper payments throughout the year.
Mismatched information returns - If W-2s and 1099s from employers and clients don't match what you reported, automated systems catch this immediately.
Alimony deductions (for older divorces) - If you deducted alimony payments, the IRS checks whether your ex-spouse reported receiving that same amount as income.
What About Random Audits?
Yes, the IRS conducts some random examinations for statistical purposes. These help them understand compliance rates and refine their algorithms. If you're selected randomly, you'll likely be told that's the reason.
Random audits can actually work in your favor. If your return is clean and well-documented, you complete the audit and move on. The IRS doesn't dig deeper just because they can.
Can You Avoid an Audit?
You can't entirely eliminate audit risk, but you can minimize it:
Report all income accurately
Keep thorough documentation for every deduction
Don't round numbers
Be reasonable with deductions relative to your income
Use actual records, not estimates
File on time
Pay taxes owed throughout the year
The goal isn't to avoid claiming legitimate deductions out of fear. It's to claim what you're entitled to and have proof ready if asked.
The IRS Audit Process: Step by Step
Understanding the process removes some of the mystery and anxiety. Here's what actually happens during an audit, from that first notice to the final resolution.
Step 1: You Receive the Notice
Audits always start with a letter. The IRS will never initiate an audit by phone, email, or text. If someone calls claiming to be from the IRS and demanding immediate payment or threatening arrest, it's a scam. Hang up.
The notice will specify:
What tax year is being examined
Which items on your return are being questioned
What documentation you need to provide
The deadline for your response (typically 30 days)
Contact information for the examiner (if assigned)
Read the notice carefully. Sometimes it's asking for simple clarification, not launching a full audit.
Step 2: Don't Panic—Organize
Take a deep breath. Most audits are manageable. Now's the time to gather your documents.
Pull together:
The tax return being examined
All supporting documents (receipts, bank statements, invoices, contracts)
Any correspondence you've already received from the IRS
Worksheets or notes you used when preparing the return
If you're missing documentation for some items, work on reconstructing it. Bank statements, credit card statements, and third-party records can often fill gaps.
Step 3: Decide Whether to Represent Yourself or Hire Help
For a simple correspondence audit—the IRS wants receipts for $500 in medical expenses, and you have them—you might handle it yourself.
For anything more complex, professional representation is worth the cost. This includes:
Office or field audits
Examinations involving business records
Situations where you're missing some documentation
Any case where you're uncertain how to respond
Remember: anything you say to the IRS can be used to expand the audit. A CPA or EA knows what to volunteer and what to withhold.
Step 4: Submit Your Response
If it's a correspondence audit, mail your documentation with a cover letter explaining each item. Keep copies of everything.
If it's an office or field audit, you (or your representative) will meet with the examiner, present documentation, and answer questions.
The examiner will review your documents, possibly ask follow-up questions, and determine whether your return was accurate.
Step 5: The Examination Report
After reviewing everything, the examiner issues a report with their findings:
No change - Best case scenario. Your return was correct, you had proper documentation, and no additional tax is owed.
Agreed changes - The examiner proposes adjustments (additional tax, penalties, interest), and you agree. You sign the report, pay what's owed, and it's over.
Disagreed changes - You don't agree with the examiner's conclusions. You have appeal rights.
Step 6: Appeals (If Needed)
If you disagree with the audit results, you can request an appeals conference. An appeals officer (separate from the examiner) reviews the case with fresh eyes.
Appeals often result in settlements somewhere between what you want and what the examiner proposed. The appeals officer can look at the "hazards of litigation." This means they consider what could happen if the case goes to court.
Step 7: Final Resolution
Eventually, the case concludes. You either:
Pay the agreed amount
Receive confirmation of no changes
Proceed to Tax Court (rare, but it's an option if you can't reach agreement)
Most audits never reach court. They're resolved during examination or appeals.
Timeline: How Long Does This Take?
Correspondence audits: 3-6 months typically
Office audits: 3-9 months
Field audits: 6-18 months or longer for complex cases
The more complicated your return and the more items being examined, the longer it takes.
Your Rights During an Audit
Taxpayers have specific rights during IRS examinations. Knowing these rights prevents overreach and keeps the process fair.
The Taxpayer Bill of Rights
Congress established ten fundamental rights for all taxpayers. The most relevant during an audit:
Right to representation - You can have a CPA, EA, or tax attorney represent you. Once you hire representation, the IRS must deal with them, not you directly.
Right to privacy - The IRS can only request information relevant to the examination. If they're auditing your 2025 return and ask for documents from 2020, that's usually out of scope unless there's a specific reason.
Right to a clear explanation - The IRS must explain why they're auditing you, what they need, and what your appeal rights are.
Right to finality - Generally, the IRS has three years from your filing date to audit that return (statute of limitations). There are exceptions, but in most cases, once three years pass, that return can't be audited.
Right to challenge IRS decisions - You can appeal examination results to an independent appeals officer and ultimately to Tax Court if necessary.
You Don't Have to Meet Alone
This is crucial: you never have to sit in a room with an IRS examiner by yourself. You can have representation present for every meeting, every phone call, every interaction.
In fact, once you hire a representative and submit a Power of Attorney (Form 2848), the IRS is required to work through your representative. They can't contact you directly without your representative's knowledge.
This protection is invaluable. IRS examiners are skilled at asking questions that can expand an audit beyond its original scope. A good representative knows how to answer fully but concisely, providing requested information without volunteering anything extra.
The Examination Isn't Forever
The IRS can't audit you indefinitely. There are limits:
Three-year statute - For most returns, the IRS has three years from the filing date to complete an examination and assess additional tax.
Six-year statute - If you understated income by more than 25%, the IRS gets six years.
No statute - If you never filed a return or filed a fraudulent return, there's no time limit. This is rare and reserved for serious situations.
Once the statute expires, the IRS can't assess additional tax for that year, even if they later discover unreported income.
You Can Fire a Bad Representative
If you hire someone to represent you and they're not doing a good job, you can fire them and hire someone else. Submit a new Power of Attorney revoking the old one.
Don't stay with a representative who isn't responsive or knowledgeable just because you already paid them. Your audit is too important.
How to Respond to an IRS Notice
The worst thing you can do when receiving an IRS notice is ignore it. The second worst is responding emotionally without thinking through your strategy. Here's how to respond effectively.
Read It Completely (Twice)
Before doing anything, read the entire notice carefully. Then read it again.
Look for:
What exactly the IRS is questioning
What response deadline they're imposing
What documentation they're requesting
Whether this is an audit or just a notice requiring clarification
Contact information for the examiner or department
Many people panic at the word "IRS" and miss important details that would help them respond appropriately.
Understand the Deadline
Most audit notices give you 30 days to respond. This deadline is real. If you miss it:
The IRS may assess the proposed tax without giving you a chance to argue
You might lose your right to appeal
The case could be referred to collections
In extreme cases, levies on your bank account or wages could begin
If you need more time, contact the IRS immediately and request an extension. They often grant reasonable requests, especially if you're gathering complex records.
Gather Your Documentation
Pull together every piece of paper that supports the items being questioned. This includes:
For income issues:
W-2s and 1099s
Bank statements showing deposits
Contracts or invoices
Payment records from clients
For deduction issues:
Receipts for claimed expenses
Credit card and bank statements
Mileage logs (if claiming vehicle expenses)
Proof of payment (canceled checks, wire transfers)
Appraisals (for charitable donations of property)
For credits:
Proof of qualifying for the credit (education expenses, childcare provider information, etc.)
Form 1098-T for education credits
Provider's name and tax ID for childcare credits
Organization matters. Don't just dump a shoebox of receipts on the examiner's desk. Create a clear package with a cover letter explaining each item.
Write a Clear Response Letter
Your response should be professional and to the point. Include:
The notice number and tax year
A brief statement acknowledging the examination
A list of items being questioned and your response to each
"Enclosed please find..." followed by what documentation you're providing
Your contact information
Request to contact your representative (if you've hired one)
Keep it factual. Don't include emotional appeals about financial hardship, threats, or irrelevant information. Stick to: "Here's what you asked for, here's why my return was correct."
What If You Don't Have Everything?
Sometimes you're missing documentation. You moved, the basement flooded, you just didn't keep good records. What then?
Reconstruct what you can:
Get duplicate copies from banks, credit card companies, or vendors
Use bank statements to show amounts paid even if you don't have original receipts
Find electronic records in email or online accounts
Check if your tax software saved images of documents
Cohan Rule: For some expenses (not all), courts have held that taxpayers can estimate amounts if they can prove the expense was incurred, even without perfect documentation. This doesn't work for everything, but it's better than nothing.
Partial substantiation: If you claimed $10,000 in business expenses but can only document $7,000, you're still entitled to the $7,000. Don't forfeit legitimate deductions just because documentation isn't perfect.
Consider Professional Help Before Responding
If you're uncertain how to respond, spending a few hundred dollars for a CPA or EA to review the notice and help craft a response can save you thousands in unnecessary tax or penalties.
We review notices for clients regularly. Sometimes they just need reassurance that their response is fine. Sometimes we identify issues they didn't see that would've expanded the audit.
Why Professional Representation Matters
You have the legal right to represent yourself during an audit. But should you? Here's why most people benefit from professional help.
We Know What the IRS Needs (and What They Don't)
IRS examiners are trained to ask broad questions that might uncover additional issues. A common tactic: "While we're here, can you tell me about...?"
An experienced representative knows how to answer the specific question without volunteering information that could expand the examination.
Example: The IRS is auditing your business mileage deduction. The examiner asks, "Do you have any other vehicles?" You innocently mention your spouse's car, which you sometimes use for business. Now the examiner wants records for that vehicle too—even though it wasn't in the original audit scope.
A representative would answer: "The mileage log provided covers all business mileage claimed on the return."
We Speak the IRS's Language
The IRS has its own terminology, procedures, and expectations. We've worked with examiners dozens of times. We know:
How to properly format documentation
What level of detail examiners expect
Which arguments work and which don't
When to push back on unreasonable requests
How to negotiate settlements
This familiarity speeds up the process and increases the chances of a favorable outcome.
We Take the Emotional Weight Off You
Audits are stressful. You lie awake at night worrying about penalties, wondering if you did something wrong, imagining worst-case scenarios.
When you hire representation, that weight transfers to us. You sleep easier knowing someone with experience is handling it. We deal with the IRS, respond to their requests, negotiate on your behalf.
Our clients often tell us, "I feel so much better knowing you're handling this." That peace of mind has real value.
We Can Often Appear Without You
In many cases, especially correspondence and office audits, we can handle everything without you being present. You give us Power of Attorney, and we represent you completely.
This is particularly valuable if:
You travel frequently for work
You're not comfortable speaking to the IRS
You're worried you might say something wrong
The audit involves complex tax law
Even in field audits where your presence is helpful, we control the meeting flow and handle all technical discussions.
We Reduce the Risk of Expanded Audits
One wrong answer can turn a narrow examination into a broad investigation. Examiners are trained to spot inconsistencies or areas of concern.
We keep the audit focused on its original scope and prevent fishing expeditions.
We Handle the Negotiation
If the examiner proposes additional tax, it's not always set in stone. There's room for negotiation, especially if documentation is incomplete or the law is ambiguous.
We negotiate on your behalf, arguing for the most favorable interpretation of law and facts. We know when the examiner is being reasonable and when they're overreaching.
We Manage Penalty Abatement Requests
If penalties are assessed, we can request penalty abatement (explained in detail below). This involves crafting a letter explaining why penalties should be removed and negotiating with the IRS.
Our firm has successfully gotten penalties reduced or eliminated for numerous clients. This alone can save thousands of dollars.
Penalty Abatement: Getting Relief from IRS Penalties
If an audit results in additional tax owed, the IRS typically adds penalties and interest. The interest is non-negotiable, but penalties can often be reduced or eliminated through penalty abatement.
Types of IRS Penalties
Failure to file penalty - 5% of unpaid tax per month, up to 25%. Applies if you didn't file your return by the deadline (including extensions).
Failure to pay penalty - 0.5% of unpaid tax per month. Applies if you filed but didn't pay the full amount owed.
Accuracy-related penalty - 20% of the underpayment. Applies if you substantially understated tax, claimed positions without adequate basis, or were negligent.
Fraud penalty - 75% of the underpayment. Only assessed if the IRS believes you intentionally tried to evade tax. This is rare and serious.
These penalties add up fast. On a $10,000 tax deficiency, you might face $2,000 or more in penalties alone.
Grounds for Penalty Abatement
The IRS will remove or reduce penalties if you meet certain criteria:
Reasonable cause - You had a good reason for not complying. Examples:
Serious illness or death in the family
Natural disaster destroyed your records
You relied on incorrect advice from a tax professional
Fire, theft, or other circumstances beyond your control
First-time abatement - If you have a clean compliance history (no penalties for the past three years), the IRS often grants first-time penalty relief automatically. This doesn't require proving reasonable cause—just a clean record.
Statutory exception - In some situations, the law excuses penalties. For example, if the IRS gave you incorrect written advice, you're protected from penalties if you relied on that advice.
Administrative waiver - The IRS has discretion to waive penalties in certain situations, such as if their own error or delay contributed to the problem.
How to Request Penalty Abatement
Form 843 - This is the official form for requesting penalty refunds. You explain why penalties should be removed and provide supporting evidence.
Written request - You can also write a letter to the IRS explaining your situation without using Form 843.
Phone request - For simple cases (like first-time abatement), calling the IRS and requesting removal verbally sometimes works.
Your request should include:
Explanation of what happened and why you have reasonable cause
Timeline of events
Supporting documents (medical records, death certificates, proof of disaster, etc.)
Statement that you're now compliant and current on all filing requirements
Our Success Rate with Penalty Abatement
We've helped clients get thousands of dollars in penalties removed. The key is crafting a compelling narrative with proper documentation.
One client owed $15,000 in penalties after an audit found underreported income. We showed that the underreporting happened because of confusion about 1099 reporting rules. It was not intentional evasion. The client had no past penalties and paid the owed tax right away once they learned about the issue. The IRS removed the full $15,000 in penalties.
Penalty abatement requests take time—often 2-3 months for a decision—but the potential savings make it worthwhile.
Real Audit Stories: What Actually Happens
Let's look at a few real cases (names changed) to show how audits actually play out.
Case 1: The Home Office Deduction
Situation: Marcus, a software consultant, claimed $8,000 in home office expenses. The IRS questioned whether his spare bedroom truly qualified.
The Problem: Marcus used the room primarily as an office but occasionally his kids did homework there. The IRS "exclusive use" requirement means the space must be used only for business, with rare exceptions.
Resolution: We documented that the homework sessions were occasional (2-3 times a month) and didn't significantly affect the room's business use. We provided photos showing a desk, computer, files, and no personal items. We also showed Marcus met clients there via video calls, making it his principal place of business.
Outcome: The IRS accepted the home office deduction. No additional tax owed.
Lesson: Documentation matters. Photos, descriptions of how the space is used, and proof it's your primary business location all help.
Case 2: The Charitable Donation
Situation: Lisa donated $6,000 worth of clothing and household items to Goodwill and claimed the deduction. The IRS wanted proof.
The Problem: Lisa had the Goodwill receipt, but it just listed "miscellaneous items" without itemizing values. The IRS wanted a detailed list showing fair market value for each donated item.
Resolution: We worked with Lisa to recreate a detailed list from memory and photos she had of her home before the donation. We used IRS guidelines for valuing used items (typically 10-30% of original cost depending on condition). We provided receipts for original purchases where available.
Outcome: The IRS accepted $4,500 of the $6,000 claimed—a partial adjustment. Lisa owed about $350 in additional tax but no penalties.
Lesson: For non-cash charitable donations over $500, keep detailed records of what you donated and how you valued it. Don't wait until audit time to create the list.
Case 3: The Cash Business
Situation: Tony owns a small restaurant reporting $120,000 in annual revenue. The IRS selected his return for a field audit, suspecting unreported cash income.
The Problem: Restaurants are high-risk for cash underreporting. The IRS examiner wanted to review all bank statements, supplier invoices, and cash register records.
Resolution: We prepared detailed reconstructions of daily sales, cross-referenced supplier purchases with reported revenue, and showed Tony's lifestyle was consistent with reported income (no unexplained purchases or deposits).
Outcome: The audit concluded with minor adjustments ($2,000 in unreported cash based on a few discrepancies) but no major findings. Total additional tax owed: about $600.
Lesson: Keep meticulous records if you handle cash. The IRS knows cash businesses are tempting for underreporting, so they look extra carefully.
Frequently Asked Questions
Q: Can I be audited for multiple years at once?
Yes. If the IRS finds significant issues in one year, they often expand to examine adjacent years. Typically, they'll audit up to three years, but they can go back six years if they find substantial underreporting.
Q: What if I can't afford to pay the additional tax?
If you owe money after an audit but can't pay right away, you have options. You can set up an installment agreement, which is a monthly payment plan. You can also consider a partial payment installment agreement. In serious cases, you might look into an offer in compromise, which lets you settle for less than you owe. The key is not ignoring it—work with the IRS on a payment solution.
Q: Will I go to jail?
Highly unlikely. The IRS pursues criminal charges in less than 3,000 cases per year out of millions of audits. Those cases almost always involve deliberate fraud, not honest mistakes or disagreements about deductions. Civil audits resulting in additional tax owed don't lead to criminal prosecution.
Q: Can the IRS audit me every year?
No. IRS policy prohibits re-examining the same items for the same year unless there's evidence of fraud. And while they technically could audit different years consecutively, it's rare unless you're engaged in ongoing questionable activities.
Q: What if I already threw away my records?
Work on reconstructing them. Get bank statements, credit card statements, and duplicate copies from vendors. Some records can be recreated electronically. While perfect records are better, partial documentation is better than nothing.
Q: How much does audit representation cost?
It varies by complexity. A simple correspondence audit might cost $500-1,500. An office audit typically runs $1,500-3,500. Complex field audits can cost $5,000-10,000 or more. Most representatives charge hourly or flat fees depending on the situation. The cost is often less than the penalties you'd face without representation.
Q: Can I just agree to the audit findings to make it go away?
You can, but you shouldn't agree without understanding what you're agreeing to. Once you sign the examination report, you can't appeal. Make sure the proposed changes are correct before signing. If you're uncertain, get a second opinion from a tax professional.
Q: What happens if I just ignore the audit notice?
Bad things. The IRS will assess the proposed tax plus penalties. They'll send you a bill. If you don't pay, they can file a tax lien (public record), levy your bank accounts, or garnish your wages. Ignoring IRS notices is never a good strategy.
Conclusion: You Can Get Through This
If you're facing an audit, take a deep breath. Thousands of people go through this every year, and most come out fine.
The keys to surviving an audit:
Respond promptly and don't ignore notices
Gather your documentation and organize it clearly
Know your rights and don't let the IRS overstep
Consider professional representation for anything complex
Request penalty abatement if penalties are assessed
Learn from the experience and improve your record-keeping going forward
An audit isn't the end of the world. It's stressful and inconvenient, but it's manageable, especially with the right help.
If you're dealing with an IRS audit or notice right now, don't face it alone. Our team has guided dozens of clients through examinations, negotiations, and appeals. We know what works, what doesn't, and how to protect your interests throughout the process.
Remember: the IRS isn't your enemy, but they're not your friend either. They have a job to do. Your job is to protect your rights, present your case clearly, and resolve the matter efficiently. With proper representation, most audits end reasonably well.
Don't let fear of an audit keep you up at night. Get the help you need, respond appropriately, and you'll get through this.
Facing an IRS audit or received a notice you don't understand? Don't panic—get expert help. Our team specializes in audit representation, penalty abatement, and resolving complex tax issues. We handle the IRS so you don't have to.
Welfo Accounting & Tax Services
IRS Audit Defense & Tax Resolution
📞 Phone: (279) 999-2788
📧 Email: info@welfo.us
🌐 Website: https://welfo.us
Disclaimer: This article provides general information and should not be considered tax advice. Tax laws change regularly, and individual circumstances vary. Consult with a qualified tax professional about your specific situation.