IRS Audit and Tax Controversy: What to Do When the IRS Contacts You
By Dion Macbeth, California attorney
An IRS notice can be confusing and time-sensitive. A thoughtful response begins by understanding exactly what the agency is asking for, when a response is due, and whether the issue is factual, legal, procedural, or some combination.
Read the notice carefully
Confirm the tax year, issue, response deadline, contact information, and requested documents. Keep the envelope and every page of the notice. Different notices require different responses, and a phone call does not always replace a written submission.
Do not assume an IRS position is correct simply because it appears official. Gather the return, workpapers, receipts, agreements, account records, and correspondence that relate to the issue.
Organize before responding
A complete but unfocused document dump can make an audit harder. Organize the response around the notice's questions, identify gaps honestly, and keep a copy of everything submitted. A tax attorney can coordinate with a CPA when legal positions, privilege, or potential penalties are involved.
Appeal and collection options may exist
Depending on the posture, a taxpayer may have administrative appeal rights, Tax Court options, payment arrangements, penalty relief arguments, or collection alternatives. Missing a deadline can narrow those options, so early review is valuable.
Common Questions
Further Detail
Ignoring a notice can lead to an assessment based on incomplete information, penalties, or collection activity. Review the deadline and seek advice promptly.
With appropriate authorization, a tax attorney can often communicate with the IRS, help prepare a response, and advise on appeals or collection strategy.
Legal Guidance
Discuss This Matter With Harrington Wells
Contact Harrington Wells to request an initial review. The firm will determine whether the matter falls within its current scope and capacity.
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