How to handle an IRS audit from notification to resolution: authority checks, document gathering, response preparation, representation, and case closeout.
Confirm you have a valid POA (Form 2848) on file. Review the audit notice to understand the scope: which items, which tax year, and whether it is correspondence, office, or field examination.
Collect all records related to the audited items. Organize by issue. Prepare a document index that maps each IRS request to the supporting documentation.
Address each item in the audit notice. Provide clear explanations and supporting documentation. If the taxpayer's position is defensible, state the facts and applicable law.
Submit the response before the deadline. Log the submission method, date, and confirmation number. Set follow-up reminders based on the audit type and expected IRS timeline.
When the audit resolves, document the outcome: no change, agreed adjustment, or disputed adjustment requiring appeals. File the closeout record and retain for the required period.
REPRESENTATION includes the templates, checklists, logs, and SOPs to execute this workflow consistently across every engagement.