IRS Audits

How does the IRS notify you of an audit? When you’re selected for an audit, you’ll receive a notice of the audit by mail. The IRS does not place phone calls or send e-mails to notify the taxpayer of an audit review.

Depending on the circumstances of your case, you may be able to respond to the audit via mail, but keep in mind that in some instances, an in-person meeting will be requested by the IRS. This meeting could be held at:

• At your place of business
• At a local IRS office
• Held at your home

Preparing for an audit involves:

• Gathering any necessary items that were requested in the letter arranging the audit
• Obtaining a copy of your tax returns
• Gathering any other documents that support your return

Be sure to also make copies of your documents that you can leave with the agent if you have an in-person meeting.

You may also want to consider representation for your audit. Tax audits can cause a lot of stress and be a very lengthy and time-consuming process.

Darrin T. Mish can help guide you through this process step-by-step. We have experience in dealing with the IRS and are capable of assisting you with any type of tax audit.

IRS audits are generally completed within one year, however, the type of audit and any complications that arise can affect the time frame.

• Mail audits are usually the quickest and can take up to three to six months.
• Office audits are also generally quick and can take three to six months.
• Field audits can take up to a year or longer depending on the circumstances.

Regardless of the type of audit, the statute of limitations on IRS audits is three years from the date you were notified. All audits must be completed within that time.

Whether you are an individual or a business owner, you may be able to satisfy the IRS agent auditing you by recreating the receipts of certain deductions or providing a logical explanation of an expense.

If you want to recreate your expenses, here are some suggestions:

• Review your bank or credit card statements
• Contact vendors or suppliers who might have duplicate records of the transaction
• Check your appointment books for information about travel, the number of clients, or services provided.
• Review your phone records
• Use Google Maps to estimate mileage for travel expenses

Unfortunately, there's no guarantee that the IRS will accept these receipt recreations; some auditors are more reasonable than others. If your deductions are not accepted, don't lose hope. You can file an appeal!