What to Do If IRS Audits You

A lot of people want to know what to do if the IRS audits them even if they have not been selected for an audit and have not received a letter audit either. Below is what to do if the IRS audits you with a correspondence audit or a letter audit. See other sections for what to do and how to prepare when you have been selected for an office audit or a field audit.

What to do When Receiving a Letter Audit?

It is not uncommon for a taxpayer to receive a letter from the IRS stating that there were mistakes in his or her tax return and that he or she now owes the IRS more money. A letter of such nature from the IRS is sometimes called a letter audit or a correspondence audit. Yes, when you receive this type of letter from the IRS, you are effectively being audited by the IRS. The letter audit or the correspondence audit is, by far, the most common type of IRS audit. When you receive the letter already it, you can make a pain-free or you can make it more painful.

Agreeing with the IRS

If you have received a letter from the IRS stating that you owe them more money, you can either agree or disagree. If you agree that you indeed made mistakes and that you should pay more taxes, then you just pay the taxes plus interests and possibly penalties that the IRS demands. Just follow the instructions outlined by the IRS in the later audit and you will be fine.

Disagreeing with the IRS

that some taxpayers that disagree with what the IRS found. You do not have to pay the amount that the IRS wants if you think that the IRS is wrong. The correct course of action would be to respond to the letter from the IRS explaining why you disagree with them. You will have a small window of opportunity responded IRS. If you do not respond within the time allowed, the IRS will assume that you agree with their findings and you will need to pay the additional taxes. Of course, some taxpayers do not pay the additional taxes that the taxes stay on their records plus interests as well as penalties.

When writing to the IRS, be as specific and detailed as possible. You should also attach a copy of the letter from the IRS that you received. If you have questions or want to dispute by phone, the IRS audit letter that you received should have a phone number that you can call. The problem is, it usually takes a long time to get through to somebody. Another problem is that, that somebody will then just tell you to submit a written explanation because a verbal one is not adequate.