Receiving an audit notice is stressful, but manageable — especially with good records.
Types of Audits
Correspondence (letter asking for documentation — most common), office (you go to IRS/NJ office), and field (agent comes to you — least common for small businesses).
Your Rights
Professional treatment, to know why info is requested, to appeal findings, and to have CPA representation.
How to Respond
Don’t panic. Read the notice carefully. Gather only what’s requested. Contact your CPA immediately. Respond by the deadline. Don’t volunteer extra information.
Prevention
Organized records, monthly reconciliation, substantiated deductions, timely filing, and CPA review before filing.
Disclaimer: The information provided is for general educational purposes only and does not constitute tax, legal, or investment advice. This content is not intended or written to be used, and cannot be used, for the purpose of avoiding penalties under the Internal Revenue Code. Tax outcomes depend on your specific facts and circumstances. Viewing this material does not create a CPA-client relationship. Personalized advice is provided only through a signed engagement letter.
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