IRS audit representation built on the record

The IRS begins an audit by mail. The first review preserves the complete notice and envelope, confirms that the communication is authentic, and identifies the form, tax year or quarter, items under review, response method, and due date. A request involving one deduction or credit should not be treated as though the entire return has automatically been challenged.

Deadlines are notice-specific. Some preliminary examination letters provide a limited period to request an administrative appeal, while a statutory notice of deficiency generally gives 90 days to petition the United States Tax Court, or 150 days when addressed to a person outside the United States. The IRS cannot extend the Tax Court filing deadline. The actual notice should be reviewed promptly, with legal counsel involved when court rights or legal strategy are at stake.

• Keep every page of the notice, its attachments, response forms, and the envelope
• Locate the filed return and amendments for every period identified
• Gather prior IRS correspondence, payment confirmations, and available transcripts
• Record the response date, delivery method, IRS contact, and any scheduled meeting

A correspondence audit is handled primarily by mail and usually requests support for identified income, expenses, deductions, or credits. An in-person examination may occur at an IRS office, the taxpayer’s home or business, or the representative’s office. The location and scope affect the records, preparation, and meeting plan.

Before responding, we compare the written request with the filed return and determine which schedules, transactions, and accounting records are relevant. That keeps the response focused while preserving a clear record of what the IRS requested and what was supplied.

When Safe Harbor Accounting accepts an examination engagement, IRS Form 2848 may authorize an eligible representative for specified tax matters and periods. The authorization permits representation and access to confidential tax information only within its stated scope.

Form 8821 serves a different purpose: it can authorize access to tax information but does not authorize advocacy before the IRS. Representation also does not remove the taxpayer’s responsibility to provide accurate information, preserve records, and make required decisions.

The supporting file should connect each requested item to the amount reported on the return. We reconcile source documents to tax schedules, identify missing or inconsistent records, and prepare an index or summary when it helps explain a group of transactions.

Relevant records may include bank statements, receipts, invoices, canceled checks, contracts, mileage records, payroll reports, depreciation schedules, and bookkeeping reports. Copies should be organized by year and type, with enough context to show the transaction, business purpose, date, ownership, and relationship to the reported item.

• Match every requested issue to the return line or schedule under examination
• Reconcile summaries to original records and explain material differences
• Keep a complete index and copy of everything submitted
• Do not substitute document volume for relevant, traceable evidence

The engagement may include reviewing the initial request, preparing the response, confirming delivery, answering follow-up questions, participating in an interview, reconciling proposed adjustments, and reviewing the examiner’s report. A communication log and retained submissions keep later responses consistent.

The IRS describes three general outcomes: no change, agreed, and disagreed. A no-change result means the examined items were substantiated without adjustment. An agreed result requires careful review before signing. A disagreed result may lead to a manager conference, dispute-resolution procedure, administrative appeal, or court consideration depending on the letter and procedural stage.

When a proposed adjustment is unsupported or incomplete, the response should identify each disputed issue, the relevant facts, governing authority, and supporting evidence. The IRS may permit a conference with the examiner’s manager, mediation in qualifying cases, or review by the Independent Office of Appeals.

Many examination letters use a 30-day protest period, but not every notice follows the same procedure. A statutory notice of deficiency is a different stage and carries the Tax Court deadline printed in the notice. Missing a date can narrow the available options, so the actual letter—not a general timeline—controls.