If you disagree with an IRS audit decision, the most important step is to gather records that support your position. The IRS may change your income, deductions or credits based on the information it reviewed, but you can respond with documents and a clear explanation.
Records that support your tax return
Bank statements, receipts, invoices and canceled checks can help show the income, expenses or deductions reported on your return. Credit card statements may also help prove business or other deductible expenses. Organize the records by date and category so they match the items the IRS questioned. Electronic records can also be useful if they are complete, easy to read and accurate.
Documents that challenge the IRS findings
Read the IRS notice carefully to see what changed and why. Then gather documents that address each adjustment directly.
If you already sent information to the IRS, keep copies of that correspondence. Certified mail receipts or delivery confirmations may help show when records were submitted. A written explanation can also help connect the facts in your case to the tax rules that apply.
For some correspondence audits, the IRS offers an audit reconsideration process that lets taxpayers submit more information if they disagree with the result.
Deadlines matter
IRS notices usually include response deadlines. Missing a deadline can limit your options for challenging the adjustment or using certain administrative remedies.
Keep copies of the audit notice, your tax return, supporting records and all IRS communications in one place. Good organization can make it easier to respond on time and avoid missing key details.
When professional help may be useful
A tax attorney or tax professional can review the audit findings, identify the records you still need and help you decide whether audit reconsideration, an appeal or another response is the best next step. If you disagree with an IRS audit decision, the strongest response is usually a simple one: records, facts and a clear explanation.