What to Do If You Receive an IRS Audit Letter

Facing an audit doesn’t have to be overwhelming. Here’s a simple, step-by-step guide to help you respond with confidence.

1. Stay calm and confirm it’s real

Take a deep breath. An IRS audit letter is serious, but it doesn’t mean you’re in trouble. First, make sure the letter is legitimate: check that it’s printed on official IRS letterhead, includes a notice number, and came through the mail. Never respond to unsolicited phone calls claiming to be from the IRS.

Above all, do not ignore the letter. Failure to respond can result in the IRS making decisions on your behalf, including assessing additional taxes and penalties.

2. Read the letter carefully

Understand exactly what the IRS is asking. The letter should tell you:

• Why you’re being audited
• What tax year(s) are under review
• What documentation you need to provide
• Whether the audit is by mail or in person
• The deadline to respond

Typical requests include proof of income (like W-2s or 1099s), receipts for deductions, and bank or credit card statements. If anything is unclear, you can call the IRS directly using the contact number on the letter.

3. Gather the requested documents

Start collecting all documents that support the parts of your tax return under review. These may include:

• W-2s, 1099s or other income statements
• Receipts for deductions or expenses
• Invoices, mileage logs or charitable donation records
• Bank and credit card statements
• A copy of the tax return(s) being audited

Only provide what the IRS has asked for. Don’t send unnecessary or unrelated information.

4. Organize everything clearly

Separate your documents into categories like income, expenses and deductions. Use folders, labels or tabs to keep things neat and accessible. If you’re mailing documents, include a cover letter summarizing what you’re sending and how each item addresses the IRS’s concerns.

Good organization helps IRS examiners process your case more efficiently, and shows that you’re cooperating professionally.

5. Meet the deadline (or request more time)

Your audit notice will include a response deadline, usually 30 days. Send your documentation or schedule your appointment before that deadline. If you need more time, call the IRS right away to request an extension.

For mailed responses, always use certified mail or another trackable method. If you miss the deadline without notice, the IRS may finalize its findings without your input.

Keep copies of everything you send and document any phone calls (names, dates and discussion points).

How Santana & Associates can help

At Santana & Associates, we help individuals and businesses respond to IRS audit letters and resolve tax challenges with confidence. Based in Houston, TX and serving clients since 1979, we represent individuals and businesses across Texas and beyond.

• IRS audit representation: we communicate directly with the IRS on your behalf, manage all paperwork, and protect your interests throughout the audit process.
• Tax advising: guidance on IRS notices, tax strategies and compliance.
• Tax debt resolution: whether you owe additional taxes or need to settle old debts, we negotiate with the IRS to find manageable solutions, including installment plans and offer-in-compromise settlements.

What happens after the audit?

Once the audit is complete, you’ll receive one of three outcomes:

No change

The IRS accepts your return as filed. You owe nothing additional, and the case is closed.

Agreed (changes made)

The IRS proposes changes to your return (like disallowed deductions or unreported income), and you agree. You’ll receive a summary report and may owe additional tax, penalties or interest. You can pay in full or set up a payment plan.

Disagreed (appeal)

If you disagree with the audit results, you have the right to appeal. This could involve a meeting with the examiner’s manager or filing with the IRS Independent Office of Appeals. If necessary, you can take your case to Tax Court.

Keep a copy of all audit-related materials for your records. Most should be kept for at least three years from the date of filing.