Got an IRS Audit Notice in NYC? Here is Exactly What to Do

Receiving an IRS audit notice is stressful but manageable. Here is a step-by-step guide to protecting yourself and resolving the audit successfully.

Disclaimer: This article is for general informational purposes only and does not constitute professional tax or legal advice. Tax laws change frequently and vary by individual circumstance. Always consult a qualified tax professional before making financial decisions.

Receiving an IRS audit notice feels alarming — but it does not have to be a disaster. Most audits are resolved without any additional tax owed, especially when you respond correctly and promptly.

Not all audits are the same. A correspondence audit is the most common and least serious — the IRS simply mails you a letter requesting documentation for a specific item on your return. An office audit requires you to visit a local IRS office. A field audit, the most intensive type, involves an IRS agent visiting your home or business.

The first thing to do is read the notice carefully. IRS notices are labeled with a number in the top right corner. CP2000 notices are among the most common and simply indicate a discrepancy between your return and information the IRS received from third parties like employers or banks.

Every IRS notice has a response deadline. Missing this deadline can result in automatic assessments of additional tax, penalties, and interest. Mark the deadline immediately and begin gathering your documentation.

For each item the IRS is questioning, gather all supporting documentation. This includes receipts, bank statements, invoices, contracts, and any other records that support the amounts you reported on your return.

For anything beyond a simple correspondence audit, consider hiring a tax professional to represent you. A CPA, enrolled agent, or tax attorney can communicate directly with the IRS on your behalf, knows audit procedures inside and out, and can significantly improve your outcome.

The IRS Taxpayer Bill of Rights gives you important protections. You have the right to professional representation, the right to appeal IRS decisions, and the right to only pay the correct amount of tax owed.

If the IRS proposes changes you disagree with, you have the right to appeal through the IRS Independent Office of Appeals. If you still disagree after appeals, you can take your case to Tax Court.

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