How to Survive an IRS Audit

Learn what to expect during an IRS audit and how to respond properly to protect yourself and resolve the process smoothly.

Understand what type of audit you're facing. The IRS conducts three types: correspondence audits (handled by mail, about 75% of all audits), office audits (you visit an IRS office), and field audits (an agent comes to you). Read your notice carefully — it will specify which type and what tax year or items they're questioning.
Gather all supporting documentation. Collect receipts, bank statements, cancelled checks, and any records that support the items being questioned. The audit notice will list exactly what documentation they want. If you're missing records, contact banks or vendors for copies — don't guess or estimate.
Respond within the deadline. Most audit notices give you 30 days to respond. For correspondence audits, mail your documentation with a cover letter explaining each item. For office or field audits, call the number provided to schedule your appointment. Missing deadlines can result in automatic adjustments against you.
Decide whether to represent yourself or hire help. You can handle simple correspondence audits yourself if you have clear documentation. Consider hiring a CPA, enrolled agent, or tax attorney for complex issues, business audits, or if you feel overwhelmed. Professionals cost $200-500 per hour but can often resolve issues faster.
Attend meetings prepared and stick to facts. Bring only the requested documents — don't volunteer extra information. Answer questions directly and honestly, but don't elaborate beyond what's asked. Take notes during the meeting and ask for explanations if you don't understand something.
Review the results and know your options. If the IRS finds no changes needed, you'll get a no-change letter. If they propose adjustments, you can agree and pay, or disagree and request an appeal within 30 days. You can also take your case to Tax Court, but this requires filing within 90 days of the final notice.