What to Do When You’ve Been Audited

What to Do When You’ve Been Audited


As millions of Americans file taxes yearly, many get responses from the IRS. Of those responses, very few contain an audit letter from the IRS. In case an audit letter comes your way, San Diego CPAs recommend the following course of action.


Begin by taking a deep breath and read the IRS’s letter. Most letters require extra paperwork for clarification, and those letters are not audit letters. Respond to the IRS promptly. If it is an audit letter, determine what tax return section is triggering the audit letter. Next, review that section to ensure everything is correct. Then read it again to ensure it is from this year’s taxes.


This next part is critical. The IRS has three years to audit tax returns. In other words, the letter may point to tax returns from three years prior. Tax filers must record and keep track of these tax returns up to three years for this reason. After reading the letter thoroughly, gather the necessary paperwork supporting the tax return section in the selected year only. Supplementary, yet unnecessary information turns the speedy audit process into a time-consuming investigation.


During the paperwork gathering process, include W-2s and/or 1099s as supporting evidence. Include receipts, check stubs, mileage logs, and company paperwork related to the tax section. Ask third-party companies and people related to the audit in question to vouch for you, as these are other accepted forms of documentation. Some audits require additional forms filled out and returned by a deadline while other audits occur face to face.


The one thing tax filers do that gets them in trouble is ignoring the letter. The IRS is not going away until tax filers answer the letter and complete the task. After all, audits aren’t problematic; the IRS just wants to ensure the information is correct. The audit is a fast, smooth process. Respond promptly, remain respectful and be courteous throughout the process.


Should the IRS find a discrepancy in your taxes and you need to appeal the IRS decision, contact R.A. Michael and Associates at (844) 780-1100 today. We can help you file your taxes correctly to avoid any issues with the IRS.