How to Survive an Audit
An IRS audit notice can feel overwhelming, but most audits are routine reviews of specific items on a specific return. Being selected does not mean the IRS believes you did something wrong. The Taxpayer Advocate Service confirms that selection for examination does not automatically indicate a problem.
This free webinar explains how the audit process works, what your rights are, how to respond correctly, and when professional representation may make a difference.
Watch the Free Webinar
Tax attorney Jason D. Carr, Esq., LL.M., walks through the IRS audit process from the first notice through final resolution.
You will learn how to:
- Understand why returns are selected for examination
- Identify whether your audit is correspondence, office, or field
- Know the statute of limitations and why it matters
- Exercise your rights during the process
- Respond to a correspondence audit by mail
- Prepare for an in-person audit
- Avoid the five mistakes that make audits more expensive
- Understand the 30-day letter and the appeal process
- Recognize when professional help is appropriate
What You Will Learn
1. Why the IRS Selected Your Return
The IRS selects returns for examination using statistical scoring, document matching, related examinations, and compliance research programs. IRS personnel screen the highest-scoring returns and identify items most likely to need review.
Being selected does not mean the return is wrong. It means the IRS wants to verify specific items.
2. The Three Types of Audits
Correspondence audits are the most common. They are conducted entirely by mail and focus on specific items. Office audits take place in person at an IRS office with a broader scope. Field audits involve a revenue agent visiting your location and typically involve the most complex returns.
3. The Statute of Limitations
The IRS generally has three years from the filing date to initiate an audit. That period extends to six years if more than 25% of gross income was omitted. There is no time limit for fraud or unfiled returns.
4. Your Rights During an Audit
The Taxpayer Bill of Rights guarantees the right to be informed, to challenge the IRS’s position, to appeal, to finality, to privacy, and to retain representation. Under IRC §7521, you can have a representative present at any IRS meeting and may consult with them before answering questions.
5. How to Respond
The webinar covers how to handle correspondence audits (match items, gather support, respond by the deadline) and how to prepare for in-person meetings (organize by item, bring only what is requested, limit your answers to what is asked).
6. The Five Mistakes That Make Audits Worse
Ignoring the notice. Volunteering information the IRS didn’t request. Misrepresenting facts. Bringing disorganized records. Agreeing to proposed changes without reviewing them carefully.
7. What Happens After the Audit
If you disagree with the examiner’s findings, the IRS will generally issue a 30-day letter offering the right to appeal to the IRS Independent Office of Appeals. If Appeals cannot resolve the case, a Notice of Deficiency (90-day letter) follows, and you have 90 days to petition the U.S. Tax Court before the tax is assessed.
IRS Audit Checklist
When you receive an audit notice, collect:
- The IRS notice
- Tax year and items being examined
- The response deadline
- The filed tax return for the year involved
- W-2s, 1099s, K-1s, and supporting schedules
- Receipts, invoices, and bank statements for questioned items
- Mileage logs if vehicle expenses are at issue
- Prior IRS correspondence
- Payment records
When You Should Consider Professional Help
- The audit involves business income or self-employment
- The proposed adjustment is large
- Multiple tax years are involved
- Penalties are being proposed
- The audit is in person (office or field)
- You are unsure how to organize a response
- You are not confident about the positions on the return
How The Law Office of Jason Carr Helps
We review the notice and the items at issue, analyze the return and supporting records, prepare the response or organize documents for an in-person examination, represent you during the audit, and handle the appeal process if the case goes to the IRS Office of Appeals.
Your Next Step
If you received an audit notice, schedule a consultation. Have the notice, the tax year, and the deadline available.
This webinar is for educational purposes only and does not create an attorney-client relationship or constitute legal advice.
