Read the Letter
Audit notices tell you exactly what the IRS wants to verify. Correspondence audits ask for documentation on specific items. Office audits require you to show up with records. Field audits mean a revenue agent visits you. The type determines your strategy.
Three Rules
Do not panic. Do not ignore it. Do not give the IRS more than they asked for. Answer exactly what they ask, with documentation, and nothing else. Volunteering extra information opens doors the IRS had not planned to walk through.
Get Representation
For anything beyond a simple correspondence audit, professional representation significantly improves outcomes. A tax attorney knows how to limit the scope, present documentation favorably, and preserve your appeal rights if the results are unfavorable.
The Appeals Safety Net
If the audit produces a bad result, the IRS Office of Appeals provides an independent review. Appeals officers can settle cases based on litigation hazards, often producing much better outcomes than the examination level.
An audit is a question, not an accusation. How you answer the question determines everything.