What To Do When You Receive an IRS Notice
The single most important thing you can do when an IRS audit notice arrives is to act promptly. Every notice has a deadline. Missing it can result in automatic assessments, penalties, and limited options for recourse.
- Do not ignore the notice. Failing to respond gives the IRS authority to make changes to your return without your input.
- Note the deadline. Most IRS notices provide 30 days to respond. The Notice of Deficiency gives 90 days to petition Tax Court.
- Do not call the IRS yourself. Anything you say can be used against you. Let your attorney communicate on your behalf.
- Contact an attorney immediately. Early involvement gives your attorney the most time and options to build your defense.
Important Deadlines
- 30 Days
- Standard response window for most IRS correspondence and examination notices.
- 90 Days
- Deadline to petition the U.S. Tax Court after a Notice of Deficiency. This deadline is absolute.
- 3 Years
- The IRS generally has 3 years from the filing date to audit your return. This extends to 6 years if gross income is understated by more than 25%.
- No Limit
- There is no statute of limitations for fraud or for returns that were never filed.
Types of IRS Audits
The IRS conducts three types of audits, each with different levels of complexity and risk. Knowing which type you face is the first step in building an effective defense.
Correspondence Audit
The most common audit. The IRS sends a letter requesting documentation to verify specific items on your return. These are handled by mail, but a poor response can escalate the situation.
- Typically targets a single issue (charitable deductions, income discrepancies)
- Response deadline is usually 30 days from the notice date
- Proper documentation and a well-crafted response can resolve most issues
Office Audit
You are asked to appear at a local IRS office with your records. An IRS examiner reviews your documentation in person and asks questions about your return.
- Usually involves multiple items or more complex issues
- You have the right to have your attorney present
- I can attend the audit in your place through a Power of Attorney
Field Audit
The deepest audit type. An IRS Revenue Agent comes to your home, business, or your representative's office to conduct an in-depth examination of your financial records.
- Often targets high-income individuals and businesses
- The agent may review multiple tax years simultaneously
- Professional representation is critical to managing scope
My Audit Defense Process
A disciplined, methodical approach to every IRS audit so nothing is overlooked and your rights are protected at every stage.
Review Your Notice
I analyze the IRS notice or audit letter, identify the specific issues, determine the audit type, and assess your exposure. Understanding the scope is essential before taking any action.
Analyze Your Returns
I review the tax returns under examination along with all supporting documentation. I identify potential vulnerabilities, gather missing records, and determine the strongest positions to defend.
Prepare Your Response
I draft a thorough response tailored to the specific issues raised. Every document is reviewed, every position is supported, and every argument is constructed to minimize your liability.
Represent You Before the IRS
Using a Power of Attorney (Form 2848), I handle all communication and meetings with the IRS on your behalf. You do not need to speak with the IRS directly or attend any audit appointments unless you choose to.
Resolve or Escalate
If the audit results are favorable, I close the matter. If not, I pursue administrative appeals, negotiate settlements, or prepare for Tax Court litigation.
Common IRS Notices
The IRS uses a series of coded notices and letters throughout the audit and collection process. Here are the ones you are most likely to see.
Underreporter Notice
The IRS received information (W-2s, 1099s) that does not match what you reported. Not technically an audit, but it proposes changes and additional tax. A bad response can trigger a formal audit.
Examination Notification
Notifies you that your return has been selected for examination and identifies the specific items the IRS wants to review.
General 30-Day Letter
Sent after an examination is complete. Proposes adjustments and gives you 30 days to agree or file a protest with the IRS Office of Appeals.
30-Day Letter (Post-Exam)
Issued after an examination, giving you the right to appeal the examiner's findings before the IRS issues a statutory Notice of Deficiency.
Notice of Deficiency (90-Day Letter)
The IRS's final determination that you owe additional tax. You have exactly 90 days to petition the U.S. Tax Court. Missing this deadline means you must pay the tax and sue for a refund.
Taxpayer Bill of Rights
Every taxpayer has fundamental rights when dealing with the IRS. The Taxpayer Bill of Rights, codified in the Internal Revenue Code, establishes ten rights the IRS must respect. A qualified attorney ensures these rights are upheld throughout the audit process.
One of the most important is the right to retain representation. With a Power of Attorney on file, your attorney communicates directly with the IRS, attends meetings on your behalf, and ensures the IRS follows proper procedures at every step.
Key Taxpayer Rights
- The right to be informed about what you need to do to comply with tax laws
- The right to quality service that is prompt, courteous, and professional
- The right to pay no more than the correct amount of tax
- The right to challenge the IRS's position and be heard
- The right to appeal an IRS decision in an independent forum
- The right to finality in knowing the maximum time to challenge an IRS position
- The right to privacy and confidentiality in tax matters
- The right to retain representation of your choosing
Nationwide IRS Representation
Because IRS matters are governed by federal law, Attorney James Maule can represent you before the IRS regardless of where you live. I represent clients in all 50 states. All communication with the IRS is handled remotely, so you never need to travel.
Statute of Limitations
Years
Standard period for the IRS to audit a return from the filing date.
Years
Extended period when gross income is understated by more than 25%.
Years
Period the IRS has to collect assessed tax after the assessment date.
No Limit
No statute of limitations applies to fraud or unfiled returns.
Frequently Asked Questions
Should I hire a lawyer for an IRS audit?
What are my rights during an IRS audit?
How long does an IRS audit take?
Can you represent me if I live in another state?
Related Tax & Estate Services
Explore our other practice areas serving individuals, families, and small businesses across Michigan and nationwide.