IRS Audit Notice?
Don't Face Them Alone.

An IRS audit doesn't mean you did anything wrong. But how you respond determines whether you owe $0 or $50,000 more. Here's how we defend you and minimize the damage.

Why the IRS Audits — And What It Means

First, take a breath. An audit notice is not an accusation of fraud. It simply means the IRS wants to verify certain items on your return.

Common Audit Triggers:

  • High income: Taxpayers earning $200K+ are audited at higher rates
  • Schedule C (self-employment): Business expenses are frequently scrutinized
  • Large deductions: Home office, vehicle, meals, travel expenses
  • Rental losses: Especially if you don't qualify for Real Estate Professional Status
  • Cash-intensive businesses: Restaurants, retail, contractors
  • Mismatched 1099s/W-2s: If reported income doesn't match IRS records
  • Round numbers: $10,000 in expenses, $5,000 in mileage (looks estimated)
  • Random selection: Yes, sometimes it's just bad luck

💡 "The IRS doesn't audit you because they think you're a criminal. They audit you because their algorithm flagged something."

How you respond determines whether it's a minor inconvenience or a financial disaster.

The 3 Types of IRS Audits

1. Correspondence Audit (Mail)

Most common type. The IRS sends a letter (CP2000, CP2501, or audit notice) questioning specific items on your return.

What they want: Documentation to support questioned deductions or income discrepancies.

Response deadline: Typically 30 days

How we help: We prepare a comprehensive written response with supporting documentation, legal citations, and explanation. You never have to talk to the IRS.

2. Office Audit (IRS Office)

More serious. The IRS requests an in-person meeting at their local office.

What they want: Detailed review of specific areas (business expenses, rental losses, etc.)

Duration: 1-3 meetings over several weeks

How we help: We attend all meetings on your behalf. You don't have to be there. We present evidence, negotiate with the examiner, and protect your rights.

3. Field Audit (Your Location)

Most intensive. An IRS Revenue Agent comes to your home, business, or accountant's office.

What they want: Comprehensive examination of your entire return (or multiple years)

Duration: Several months, multiple meetings

How we help: We coordinate all logistics, act as the point of contact, control the information flow, and negotiate aggressively on your behalf. Never let the IRS talk directly to you or your employees.

Our Audit Defense Process

1

Immediate Power of Attorney Filing

We file Form 2848 (Power of Attorney) with the IRS immediately. From this point forward, all IRS communication goes through us, not you. You're protected.

2

Review Your Return & Identify IRS Concerns

We analyze the audit notice to understand exactly what the IRS is questioning. Then we review your original return, supporting documentation, and identify potential vulnerabilities or strengths.

3

Gather & Organize Documentation

We work with you to collect all relevant documentation:

  • Receipts, invoices, bank statements
  • Mileage logs, calendars, appointment records
  • Contracts, lease agreements, proof of business purpose
  • Third-party corroboration (if needed)

If documentation is incomplete, we reconstruct what we can using alternative methods (Cohan Rule estimations, industry standards, etc.)

4

Prepare & Present Defense

We prepare a comprehensive response package with documentation, legal citations, and strategic arguments. For correspondence audits, this is submitted in writing. For office/field audits, we present it in meetings with the IRS examiner. Our goal: Substantiate as many deductions as possible and minimize any adjustments.

5

Negotiate with IRS Examiner

If the IRS proposes adjustments (additional taxes), we negotiate. This might involve proposing alternative calculations, citing precedent cases, or arguing reasonable cause for any questionable items. We're aggressive advocates — we don't roll over.

6

Appeal if Necessary

If the audit results in unfavorable adjustments, you have the right to appeal to the IRS Office of Appeals (an independent review). We handle the entire appeals process if needed. Many cases are resolved favorably at this stage.

Real Result: E-Commerce Entrepreneur Audit Defense

The Problem:

  • IRS audit notice for 2021 tax year
  • Claimed $78,000 in home office and vehicle expenses
  • Inadequate documentation (no mileage logs, minimal receipts)
  • Previous tax preparer had been aggressive with deductions
  • Client feared owing $30K+ in additional taxes plus penalties

Our Defense Strategy:

  • Reconstructed mileage logs using calendar, emails, and GPS data
  • Gathered bank statements and credit card records to support expenses
  • Prepared detailed business purpose explanations for each expense category
  • Argued reasonable cause for missing contemporaneous records
  • Proposed alternative calculation methods where original documentation was weak

The Result:

  • Additional tax assessed: $8,400 (vs. $30K+ feared)
  • No penalties (reasonable-cause exception granted)
  • Audit closed in 4 months
  • Payment plan set up: 24 months

Timeline: 16 weeks from audit notice to closure

"Frank didn't just defend me in the audit — he showed me how to never be in this position again. Best money I've ever spent."

IRS Audit Questions Answered

What are my chances of winning an IRS audit?

With professional representation and proper documentation, most audits result in either no change or minor adjustments. According to IRS data, about 15% of audits result in "no change" (you owe nothing additional). Another 70-75% result in some adjustments, but professional representation typically minimizes them significantly. The key is having a CPA or EA who knows how to present your case strategically and negotiate effectively.

Should I attend the IRS audit meeting?

No. Absolutely not. Anything you say can (and will) be used to assess additional taxes. Taxpayers who attend audits without representation almost always make the situation worse — they volunteer information, answer questions poorly, or inadvertently admit to things that trigger expanded audits. Let us handle it. That's what Power of Attorney is for. You never have to see or speak to the IRS examiner.

How much does audit representation cost?

$3,000–$8,000+ depending on complexity. Correspondence audits (by mail) are typically $2,500–$4,000. Office/field audits are $5,000–$10,000+ depending on the scope and duration. The investment is worth it: We routinely save clients tens of thousands in additional taxes and penalties. Example: If we reduce proposed adjustments from $30K to $8K (like the case above), you saved $22K minus our $5K fee = net $17K benefit.

What happens if I ignore the audit notice?

The IRS assesses the maximum proposed adjustments against you (no negotiation, no benefit of the doubt). They'll send you a final determination, and you'll owe the full amount plus penalties and interest. You also lose your right to appeal. Ignoring an audit is the worst possible response. Even if you have terrible documentation, professional representation can minimize the damage. Ignoring it guarantees maximum damage.

Can an audit expand to other years?

Yes. If the IRS finds significant issues (large understatement of income, fraud indicators, pattern of errors), they can expand the audit to other open years (typically 3-6 years, or unlimited if fraud is suspected). This is another reason why professional representation is critical — we control the information flow and prevent scope creep. Never volunteer information beyond what the IRS specifically requests.

How long does an IRS audit take?

Correspondence audits: 2-4 months from initial notice to resolution. Office audits: 3-6 months. Field audits: 6-12 months (sometimes longer for complex cases). The timeline depends on how quickly documentation is provided, how complex the issues are, and whether appeals are necessary. Professional representation typically speeds up the process because we know exactly what the IRS needs and how to present it efficiently.

What documentation do I need for an audit?

It depends on what the IRS is auditing, but common documentation includes:

  • Business expenses: Receipts, invoices, bank/credit card statements, proof of business purpose
  • Vehicle expenses: Mileage logs, maintenance records, proof of business use
  • Home office: Floor plan, utility bills, mortgage/rent statements, proof of exclusive business use
  • Charitable donations: Receipts, written acknowledgments from charities (required for $250+)
  • Rental properties: Lease agreements, repair receipts, property management records
  • Income: 1099s, W-2s, bank deposit records, sales records

Don't have perfect records? We can reconstruct documentation using alternative methods that the IRS accepts.

Can I negotiate the audit results?

Yes. Everything is negotiable with the IRS — if you know how. The audit examiner has discretion to accept alternative documentation, reasonable estimations, and arguments based on case law or IRS guidance. If the initial audit result is unfavorable, you can also appeal to the IRS Office of Appeals for an independent review. This is where professional representation pays for itself. We negotiate audit outcomes every day — we know what arguments work and what the IRS will accept.

Audit Notice in Hand?
Call Us Today.

Time is critical. Audit deadlines are strict. Let's defend you and minimize the damage.

Schedule Your Audit Defense Call

📞 Or call: 248-985-8100

Strategic Planning Advisors, LLC

FixIRSTax.com | Tax Resolution Division

Disclaimer:

FixIRSTax | A Division of Strategic Planning Advisors LLC provides IRS resolution services. Information provided on this site is for educational purposes only and does not constitute formal tax, legal, or investment advice. Please consult your advisor before making financial decisions.

Information provided on this site is for educational purposes only and does not constitute formal tax, legal, or investment advice. Please consult your advisor before making financial decisions.

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