IRS Tax Notice, Tax Return Audit, and Audit Appeals
The information below will help you prepare for an IRS tax audit and guide you through the Audit Appeal and Audit Reconsideration process:
What's the difference between an ambitious tax auditor and a rottweiler?
A rottweiler eventually lets go.
Taxpayer Stories of Painful IRS Audits
IRS Tax Notice Tips
How to Prepare for a Potential Audit
Tax Notice Tips - Important Things to Know If You Receive an IRS Tax Notice
Did you get one of those scary audit notices from the IRS in your mailbox?
The good news is: you are not alone. Every year, millions of letters and notices are mailed out to taxpayers.
If you received an IRS tax notice, just keep these eFile Tax Tips in mind:
1. Stay calm and don’t panic. The IRS is a bureaucracy and many notices require little attention by you and can be dealt with simply and painlessly.
2. You might be asked to make changes to your account or provide additional tax information. The notice you receive normally covers a very specific issue about your account or tax return. And yes, you might be asked for more money.
3. Each notice will have specific instructions on what to do next.
4. In case you received a notice concerning a correction made by the IRS, you should review any changes and compare them with the information on your tax return. If you agree with the correction, no reply may be necessary unless a tax payment is due.
5. Should you disagree with the correction made by the IRS, be sure to respond as requested. Explain why you don't agree and keep records of your correspondence with the IRS (include documents and information you want the IRS to consider, along with the bottom tear-off portion of the original notice). Mail your tax information to the IRS address shown in the upper left-hand corner and allow at least 30 days for a response from the IRS.
6. If you have questions, call the phone number on the top of the notice. When you call, have a copy of your tax return and the notice on hand and write down the ID of the IRS agent to whom you speak.
7. It is very important that you keep copies of all your records and correspondence safely stored in case of a tax audit.
The IRS called or emailed me asking for information and/or demanding payments. Is this a legit notice?
It is most likely a tax scam. The IRS only sends notices and letters via mail. They do not contact taxpayers via email, social media, nor phone asking for personal or financial information (or demanding tax payments). If you receive any of these fake notices, report them to the IRS.
What is the best thing to do if I'm audited?
If you are already in the midst of an audit, absolute compliance is the best way to help your situation. Making things easier for the auditor shows that you have nothing to hide and that you want to get the process over with as soon as possible.
If you are selected for an audit and the auditor determines an increase in your tax liability, you are entitled to an audit appeal. The IRS will send you a letter that explains the adjustments made to your tax return. The letter will also inform you of your right to meet with an Appeals officer and how to contact the officer. You must bring supporting documentation to your appeals conference with an Appeals officer.
Can I receive audit assistance from efile.com if I efiled my return on efile.com?
efile.com offers free audit assistance for any tax returns you prepare and efiled on efile.com. Please contact efile.com and provide details about the audit so we can help you. On your personal, secure support page, you can attach a copy of the IRS and/or state notice you received so we can help you understand what the notice is requesting from you.
If you need a copy of your tax return to prepare for an audit, sign into your efile.com account, click on "My Account" on the upper right corner, and click the appropriate link to download your return in a .PDF format.
If you have purchased a 1040Project plan (provided by My Protection Plus) on efile.com during the preparation of your tax return, you will receive the following services for three years after the filing deadline of the tax year you efiled your tax return, including, but not limited to:
- Evaluation of all related IRS correspondence
- Professional document review, organization, and consultation
- Drafting of letters and other necessary correspondence
- Assistance with telephone communication with an IRS agent for explanations and discussions during the audit process
- Assistance with all forms (including Schedules A, C, and E)
- Assistance with denied credits (Earned Income Credit, Child and Dependent Care Credit, Education Credits, Child Tax Credit, Additional Child Tax Credit, Adoption Credit, Credit for the Elderly or Disabled, Savers Credit)
If you purchased this tax audit assistance plan, please call 866-942-8348 for further assistance or contact efile.com with your tax audit questions.
How do I get a copy of my tax return if I did not efile it on efile.com?
If you did not efile your return on efile.com, please get a copy of your tax return in preparation of a tax audit.
How to Be Prepared for a Potential IRS Audit
There are many preventative steps that an individual can take to be prepared for a potential tax audit. The most important thing to do to prepare for a potential audit is to keep good records. Good records allow you to easily organize and accurately calculate your tax return. Good records also supply the physical proof for unusual deductions. Don’t forget to print and/or save a PDF copy of your tax return for your tax records.
On efile.com, you can print your completed and IRS accepted tax return(s) at anytime. Here's how:
- Login to your efile.com account.
- Click "My Account" in the upper right. Under "My Returns", you will see a link to each of the returns you have prepared with us. Click the appropriate link to download your return in a .PDF format. You will be able to print the return by clicking on the print button on the top menu of the page.
If you efiled your previous year's tax return on efile.com, you will be able to import this data into your new tax return. For example, during the current tax season you will be able to import the previous year's tax return data into your new tax return. It is in your personal interest and it is very helpful to have your previous year's return available when you start to prepare your tax return. It might also be helpful to have copies of your tax returns from earlier years handy in case there are any questions or if you need to provide documentation for schools, banks, etc.
What if I did not efile my tax return(s) on efile.com?
You can get a copy of your tax returns in preparation of a tax audit from the IRS and/or state tax agency.