After the IRS audit has been completed, the results can be very frustrating - especially if the taxpayer disagrees. Disputes about IRS audit results can be filed from taxpayers. In order to navigate the process effectively to help protect your finances, the IRS audit results need to be understood first.
Review the Audit Findings Carefully
In order to dispute the IRS findings, the audit report has to be reviewed. IRS audits report the additional changes that need to be made to the taxpayer’s report. The findings from the audit have to be compared to the taxpayer’s records to find any errors, misunderstandings, or pieces of information that might be missing. Most of IRS audit results disputes are from missing documentation, not mistakes that are made intentionally.
Gather Supporting Documentation
Strong documentation is essential when disputing an audit. Collect receipts, bank statements, invoices, contracts, mileage logs, or other records that support your original tax return. Organize your evidence clearly so it directly addresses the IRS’s concerns. Well-prepared documentation can often resolve disputes early in the process.
Respond to the IRS in Writing
If you disagree with the audit findings, you should respond by the deadline stated in the IRS notice. Your response should clearly explain why you disagree and include copies of supporting documents. Always keep copies of everything you send and use certified mail or electronic confirmation when possible.
Request a Meeting or Appeal
If the issue is not resolved with the auditor, you can request a meeting with the auditor’s supervisor. If disagreements persist, you have the right to file an appeal with the IRS Office of Appeals. The appeals process is designed to resolve disputes without going to court and is often more flexible than the initial audit.
Consider Professional Representation
Disputing an IRS audit can be complex, especially if large amounts of money or multiple tax years are involved. A tax attorney, CPA, or enrolled agent can help prepare your response, communicate with the IRS, and present legal or technical arguments effectively. A tax attorney is particularly valuable if penalties, fraud allegations, or legal interpretations are involved.
If you cannot reach an agreement through appeals, you may take your case to the U.S. Tax Court. This step should be considered carefully, as it involves legal procedures and deadlines. Professional legal representation is strongly recommended at this stage.
