Here are some useful tips for individuals who get an audit notice from IRS. Don’t panic. Most exams nowadays are done by mail-in correspondence focusing on one or two narrowly defined items on your return. The letter will ask that you mail in the records or other justification for the item in question. The process is more complicated if IRS wants you to come in for an office audit.
Make sure you’re prepared. You’ll probably have a few weeks to get ready, and if you need more time, call the agent to request that the audit be rescheduled. Pull together the records to support the numbers you reported on your return. If you have some gaps, try your best to reconstruct the missing documentation. Organize your records. You don’t want to bring in a shoebox full of receipts. Consider contacting a tax professional to go with you or to go in your place. Choosing this option depends on a number of factors, including your comfort level with handling IRS examiners and whether the items under audit are more technical. You might even be in for a pleasant surprise…where IRS pays you money.