Preparing for an Audit

IRS tax audits are rare, but taxpayers who face one need to prepare. A few key steps keep the process smooth and improve the odds of a favorable outcome. A skilled tax audit attorney can represent you throughout the process if you need help getting ready.

Being selected for an audit is largely randomized and does not by itself indicate suspected criminal activity. Even so, it is worth preparing carefully to avoid complications. There are three main types of audit, depending on how much involvement the IRS requires; see types of IRS audits for a full breakdown of the correspondence, office, and field audit and what to expect from each.

What arrives first: the audit notice

Taxpayers receive notice of an audit by mail. The notice specifies what data the IRS will examine and what supporting documentation it needs, along with due dates for any paperwork. Any email or phone call claiming to represent the IRS outside this process could be a scam; never share financial information with a caller you have not verified.

Collect the supporting documents

The documents the IRS commonly requests include:

• Previous years' tax returns
• Pay stubs and employment documents
• Receipts, bank records, and cancelled checks
• Home mortgage statements and loan documents
• Retirement account and brokerage statements
• Invoices for services paid in cash
• Legal paperwork, such as divorce papers and child custody agreements
• Documents tied to thefts or other losses, such as insurance claims or police reports

As you review these documents, you may decide to bring in a tax professional to help pinpoint the issue the IRS is examining and how to resolve it.

Organize, label, and send copies, not originals

Gather the requested records, make copies, and organize them before sending anything. Never send original documents to the IRS. The IRS prefers records organized by year with a total income and expense tally, for example a stack of receipts labeled 2024 fuel receipts, total $34,998.03.

The IRS questionnaire

The IRS may also ask you to complete a questionnaire covering marital status, filing status, age, and exemptions. It is relatively simple for most filers, and it should be returned by the stated due date. Once you return the requested documents, the IRS reviews them and may ask for more records or an in-person interview.

How an attorney helps

A tax defense attorney understands complicated tax law and can prepare you for an audit, limit unnecessary interactions and searches, and stand up for your rights throughout. If the audit is likely to be complex, or if it results in a serious legal issue, it is worth speaking with an attorney rather than relying on an accountant alone. If you disagree with the outcome once the audit concludes, see responding to an audit for what happens next and how an appeal works.