Getting Audited by the IRS?

Don't worry! If you got an audit from the IRS via mail, here's what you need to know.



DO:

  • read your letter carefully: the reason for the audit and the type of information they need from you will be included in the letter

They may be asking you for an itemized list of the expenses or the deductions on your tax return. If you can't verify an amount that you claimed, just explain the issue and how you determined the amount on your tax return.

  • Attach photocopies of requested information to the letter

  • Return photocopies and letter to the IRS via the enclosed envelope (or if your documents don't fit in the envelope, just use the address found on the envelope).

  • Keep copies of everything you send

  • Send your documents within 30 days. If you can't meet the deadline: call the number enclosed in the letter and let the IRS know

  • If you choose to fax your documents: include your name and social security number on every page so that all those pages get associated with your case file

DON'T:

  • Don't send original documents

  • Don't ignore the deadline. Send your information within 30 days or contact them directly.

What happens next?

You've sent in your photocopies of your itemized lists or explanations to the address enclosed in your letter.


After the IRS has reviewed the new information you've given them they will send you a new letter. The new letter will either be:

1) Accepting your information 2) Proposing changes


If you need to make changes

If the IRS is proposing changes to your tax return then they will send you 2 forms. (forms 4549 and form 886-A)


Form 4549 will explain the proposed changes.

Form 886-A will describe the specific changes requested and the reason for them.


If you understand and agree with the proposed changes: sign and date for 4549

Use the envelope provided to return the form and your payment.


If you disagree with the changes

If you've received the 2nd letter from the IRS outlining the changes they want to make to your tax return but you disagree with those changes thenyou have the right to appeal.

You have the right to appeal both within the IRS and before the court.


What you need to do to appeal is included in the 2nd letter.


Other resources:

Video explanation of all the information above: Click here.

More information pertaining to audits from the IRS : Click here.


All of this information was provided by the IRS. This blog post is not a substitute for legal advice and is not liable for any misinformation that may have been provided by the IRS.