Few pieces of mail raise your blood pressure like an IRS audit letter. Take a breath: most audits are narrow, focused on specific items, and entirely manageable when handled correctly. Here's what to do.
1. Read It Carefully and Note the Deadline
The letter tells you what is being examined, what they want, and by when. Many “audits” are simply requests to verify one item by mail (a correspondence audit), not a full in-person review.
2. Don't Ignore It — and Don't Panic-Respond
Ignoring it makes things worse; so does firing off documents or explanations without thinking. Both extremes hurt you. Respond on time, but deliberately.
3. Verify It's Really the IRS
The IRS initiates audits by mail, never by a threatening phone call or email demanding immediate payment. If someone calls claiming you're being audited and must pay now, it's a scam.
4. Gather Only What's Asked
Provide exactly the records requested — no more. Volunteering extra information can widen the audit unnecessarily. Organize, label, and keep copies of everything you send.
5. Consider Professional Representation
You have the right to be represented by a CPA, who can communicate with the IRS on your behalf so you don't have to. This often leads to a calmer, cleaner outcome — and keeps you from saying something that complicates things.
You Don't Have to Face It Alone
Li CPA Group represents NYC taxpayers in IRS examinations — reviewing the notice, preparing the response, and dealing with the IRS so you can focus on your business.