An audit letter from the IRS has a way of ruining your whole week. I get calls the same day, sometimes the same hour, from people who just opened one.
Take a breath. An audit is not an accusation of wrongdoing, and it is not the end of the world. But what you do in the first few days matters a great deal.
1. Read it carefully before you do anything else
Not all audit letters are the same. Some ask you to mail in documentation for a single item on your return. Others request a full in-person examination. The scope of the letter tells you how serious this is and how much time you likely have to respond.
Note the deadline. IRS audit letters come with response windows, and missing one can limit your options later.
2. Do not call the IRS and start explaining yourself
I understand the urge to call immediately and clear things up. Resist it. Anything you say to an IRS examiner can become part of the record, and an unprepared conversation can create problems that did not exist before.
Gather your thoughts and your documents first. Talk to a professional before you talk to the IRS.
3. Start pulling together your records
Whatever the letter asks about, start gathering the underlying documents now. Bank statements, receipts, mileage logs, invoices, whatever supports the numbers on your return.
The taxpayers who do best in an audit are the ones who can show their work. The ones who struggle are usually missing records, not necessarily doing anything wrong.
4. Decide whether you need representation
You are allowed to handle a simple correspondence audit yourself. But if the audit involves a business, multiple tax years, large deductions, or anything that could suggest fraud, I would strongly encourage you to have an attorney involved from the start.
An attorney can also communicate with the IRS on your behalf, which takes the pressure off you directly.
5. Understand what happens after you respond
Once you submit your response, the IRS examiner reviews it and either closes the audit, asks for more information, or proposes changes to your return. If you disagree with the proposed changes, you have appeal rights.
Knowing this upfront helps you see the audit as a process with defined steps, not a single make-or-break moment.
If an audit letter just landed in your mailbox, do not wait until the deadline is close. Reach out through blgattorney.com or call my Oklahoma City office, and let's put together a plan before you respond.