Sharon Gross CPA

Receiving a notice from the IRS can be intimidating, but being selected for an audit doesn't necessarily mean you've done something wrong. Audits can be triggered randomly or due to red flags like mismatched income, large deductions, or inconsistencies in reporting. The key is to stay calm, respond promptly, and be thoroughly prepared.

There are several types of audits-correspondence audits conducted by mail, office audits where you meet with an IRS agent, and field audits conducted at your home or business. Regardless of type, the IRS will request documentation to support the information on your return. Keep organized records such as receipts, bank statements, mileage logs, and invoices. Having digital copies readily accessible makes this process smoother and faster.

If you're audited, it's best to consult a CPA or tax professional who can represent you, clarify the IRS's concerns, and ensure you respond appropriately. Do not ignore the audit notice-respond by the deadline and only provide the requested information. A calm, cooperative approach and professional representation often lead to a resolution with minimal disruption or penalty.