The IRS audit notice is not a criminal investigation — it's a request to verify specific items on your return

An IRS audit means the agency has selected your tax return for examination. The IRS does not contact you by phone or email to start an audit — you will receive a letter in the mail, usually sent to the address on your return. The letter will specify which tax year is under review, which items the IRS wants to examine, and what documents you need to provide. Most audits are handled entirely by mail or through an online portal; you do not have to meet anyone in person unless the IRS requests it.

The reason for the audit varies. The IRS may have flagged inconsistencies between your return and information from employers, banks, or other third parties. Sometimes an audit is random. Sometimes it results from a prior year's return. The audit does not mean you committed fraud or that you will owe money — it means the IRS wants to verify that the numbers on your return are accurate and supported by documentation.

Key Takeaways

  • The IRS initiates audits by mail only, never by phone or email, and the letter will specify which items they want to examine and when you must respond.
  • You have the right to representation by a tax professional, accountant, or attorney, and you can authorize them to communicate with the IRS on your behalf.
  • Gather the documents that support the items in question — receipts, bank statements, invoices, or other records — and organize them before you respond.
  • If you disagree with the IRS's findings, you can appeal through the IRS Appeals Office, which is a separate division from the audit team.
  • Do not ignore an audit notice; missing the deadline can result in the IRS making a information without your input and assessing additional tax, penalties, and interest.

Understand what the audit letter is asking for

Read the audit notice carefully. It will list specific line items from your return — such as charitable deductions, business expenses, rental income, or investment losses — and ask you to provide documentation. The letter will also include a deadline, usually 30 days from the date of the letter, though you can request an extension if you need more time.

The IRS may ask for receipts, invoices, bank statements, cancelled checks, credit card statements, or other records that prove the amounts you reported. If the audit concerns business income or expenses, you may need to provide profit-and-loss statements, mileage logs, or payroll records. If it concerns charitable donations, you will need receipts or written acknowledgments from the charities. The letter will specify what documents are relevant to the items under examination.

Some audit letters are straightforward — the IRS has a specific question about a single deduction. Others are broader and may ask about multiple categories of income or expense. The scope of the audit determines how much documentation you will need to gather.

Decide whether to handle the audit yourself or hire representation

You have the right to represent yourself in an audit, and many people do, especially if the audit is limited to one or two items and the documentation is straightforward. If you prepared your own return and kept organized records, you may be comfortable responding on your own.

However, you also have the right to hire a representative — a certified public accountant (CPA), enrolled agent (EA), or tax attorney — to handle the audit on your behalf. A representative can communicate with the IRS, negotiate on your behalf, and attend any meetings. If you hire representation, you will sign a power of attorney form (IRS Form 2848) that authorizes the representative to act for you. Once the IRS receives this form, they will communicate with your representative instead of you.

Representation is most useful if the audit is complex, involves multiple years or issues, or if you are uncomfortable dealing with the IRS directly. A representative can also help you understand what the IRS is looking for and what documents will be most persuasive. The cost of representation varies — CPAs and enrolled agents typically charge hourly rates, while some tax attorneys charge flat fees for audit representation.

Gather and organize the documents the IRS requested

Go through your records systematically and collect everything that supports the items in question. If the audit concerns deductions, gather the receipts or invoices. If it concerns income, gather the bank statements or 1099 forms. If the IRS asks for documentation you no longer have, write a brief explanation of why the records are unavailable — for example, "The receipt for this purchase was lost, but the charge appears on my credit card statement dated [date]."

Organize the documents in the order the IRS requested them, or in a logical order that makes it easy to follow. Label each document clearly. If you are submitting copies, make sure they are legible. Do not send originals unless the IRS specifically asks for them; send copies and keep the originals for your records.

If you are responding by mail, include a cover letter that lists the documents you are enclosing and references the audit letter's date and the items under examination. If you are responding through the IRS online portal, upload the documents in the format the portal accepts and follow the instructions for submission.

Respond before the deadline and keep copies of everything

Meet the deadline stated in the audit letter. If you need more time, you can request an extension by contacting the IRS agent or office listed in the letter. Most extensions are granted if you ask before the deadline passes. If you miss the deadline without requesting an extension, the IRS can proceed with the audit without your input and assess additional tax based on their own information.

Send your response by certified mail with return receipt requested, or use the IRS online portal if one is available to you. Keep a copy of everything you send, along with proof of delivery. If you mail documents, the return receipt proves the IRS received them. If you use the portal, take a screenshot of the confirmation page.

Do not send original documents unless the IRS specifically requests them. Originals can be lost or damaged in transit, and you may need them for your own records or for future reference.

What happens after you submit your response

The IRS will review the documents you provided and determine whether the items on your return are correct. This process can take several weeks or months. The IRS may accept your documentation and close the audit with no changes to your return. They may accept some items and request additional documentation for others. Or they may disagree with your position and propose adjustments to your return.

If the IRS proposes adjustments, they will send you a letter explaining the changes and calculating any additional tax, penalties, or interest owed. This letter is called a "30-day letter" because you have 30 days to respond. You can accept the IRS's findings, request an appeals conference, or do nothing (in which case the findings become final).

If you disagree with the IRS's findings, you have the right to appeal. The IRS Appeals Office is a separate division from the audit team, and an appeals officer will review your case independently. You can request an appeals conference by responding to the 30-day letter within the deadline.

Understand your rights during an audit

You have the right to understand why the IRS is examining your return and what the examination will involve. You have the right to representation. You have the right to appeal if you disagree with the IRS's findings. You have the right to request a conference with an appeals officer. You have the right to understand the IRS's position and the basis for any proposed adjustments.

You do not have to agree with the IRS's findings. If you believe the IRS is wrong, you can present additional documentation, explain your position in writing, or request an appeals conference. The burden is on the IRS to prove that your return is incorrect, not on you to prove that it is correct.

If the audit involves a large amount of money or complex issues, consider consulting with a tax professional before responding. A professional can help you understand your rights, evaluate the IRS's position, and decide whether to appeal.

Frequently Asked Questions

Can the IRS audit me by phone or email?

No. The IRS initiates audits only by mail sent to your address on file. If someone calls or emails claiming to be from the IRS and asking for personal information or payment, it is a scam. Hang up or delete the message and report it to the Treasury Inspector General for Tax Administration (TIGTA) at tigta.gov.

What if I don't have the documents the IRS is asking for?

Explain in writing why the documents are unavailable and provide alternative documentation if possible — such as a credit card statement showing the charge, or a bank statement showing the deposit. The IRS understands that records are sometimes lost or discarded. If you cannot provide documentation, the IRS may disallow the deduction or income item, but you can still appeal their decision.

Do I have to meet with the IRS in person?

Most audits are handled by mail or online. The IRS will request an in-person meeting only if the audit is complex or involves items that require discussion. If the IRS requests a meeting, you can bring a representative with you, and you can request that the meeting be held by phone or video instead of in person.

What happens if I owe money after the audit?

The IRS will send you a bill for the additional tax, plus interest calculated from the original due date of the return. Penalties may also apply if the IRS determines that you underpaid intentionally or through negligence. You can pay the bill in full, request a payment plan, or appeal the findings if you disagree with them.

Can I appeal the IRS's audit findings?

Yes. If you receive a 30-day letter proposing adjustments, you can request an appeals conference by responding within 30 days. An appeals officer, who was not involved in the original audit, will review your case. Appeals officers often settle cases by compromising on disputed items, so appealing can be worthwhile even if you believe the IRS has a strong position.