Photo of Professionals at Bomar Law Firm

Guiding You Through The Legal Process

Photo of Professionals at Bomar Law Firm

A proper response to notice of an audit

On Behalf of | Sep 22, 2023 | Tax Audits

It can be incredibly intimidating to receive notice that the Internal Revenue Service will be taking a closer look at your tax return. The word “audit” is frightening, especially for those who are unaware of what to expect from this process and unsure of how to respond. What you do next matters, and knowing how to properly respond to this is essential. Even if you believe that your tax returns are accurate and properly filed, you will need to have a course of action for how you can resolve this matter as expediently as possible. 

The first step in the IRS audit process is receiving a notice of the audit. This letter generally explains that an audit will take place, as well as how it will occur. For example, the IRS conducts some audits through mail correspondence only, while others are in-person. By knowing what to do next, a Georgia taxpayer can reduce the chance of complications and make it more likely the audit will conclude in an expedient manner. 

Preparing for an audit 

After you receive notice of the audit, you will have a few weeks to prepare for what is ahead. The notice you will receive should also outline what required records and documentation you must have for the audit. One important thing you can do to get ready for the audit is to audit yourself. Look over the items in question and gather all the documents required. If you need copies of past tax returns, call the IRS office and request them.  

You can also call your bank for account statements if you will need them for the audit. If there are documents you cannot locate for whatever reason, you can prepare an oral statement that provides an explanation. The more thorough the documentation you can present, the more likely you will be to provide an acceptable explanation to the auditor, which could help you save time and possibly avoid some penalties. 

Don’t navigate an audit alone 

You do not have to walk through the audit process alone. If you received notice of this happening in the near future, you will benefit from seeking professional guidance regarding how you should respond and what steps you need to take to protect your interests. As with all matters involving the IRS, you have the right to pursue a beneficial outcome.