IRS Audit: What to Expect and How to Prepare

Understanding IRS Audits

An IRS audit is an examination of your tax return to verify that income, expenses, and credits are reported accurately. Most audits are conducted by mail, though some may require in-person meetings.

Your Rights as a Taxpayer

You have important rights during an audit:

Right to Professional Representation: You can have a CPA, tax strategist, or attorney represent you
Right to Privacy: The IRS must respect your privacy during the process
Right to Information: You're entitled to know why the IRS is asking for information
Right to Appeal: You can appeal IRS decisions you disagree with

Types of Audits

Correspondence Audit

Conducted entirely by mail
Usually focuses on specific items
Most common type of audit

Office Audit

Conducted at an IRS office
More comprehensive than correspondence audits
May review multiple items

Field Audit

IRS agent comes to your home or business
Most thorough type of audit
Usually for complex returns or businesses

Common Audit Triggers

Unreported income
High deductions relative to income
Home office deductions
Large charitable contributions
Business losses year after year
Round numbers on returns

How to Prepare

Gather Documentation: Collect all records related to the items being audited
Organize Chronologically: Arrange documents in order
Review Your Return: Understand what you reported
Know Your Rights: Understand you can have representation

How We Can Help

If you receive an audit notice, contact us immediately. Our team of tax strategists is authorized to represent you before the IRS. We'll:

Review the audit notice
Gather necessary documentation
Communicate with the IRS on your behalf
Represent you at any meetings
Help with appeals if necessary