Small business wins a full IRS audit

A retail LLC received a field audit notice questioning $60,000 of deductions and was terrified of a huge bill.

Situations like this rarely improve on their own. The right move is to get a licensed representative involved early, before penalties, interest, or enforcement escalate.

Our Enrolled Agent represented them directly under Form 2848, organized the substantiation, and handled every IRS conversation.

How we defend an audit:

1. 1Decode the notice. We identify exactly which items and years are under examination so we respond precisely - never volunteering unrelated information.
2. 2Assemble substantiation. We gather receipts, logs, bank records, and a clear written explanation that ties every disputed number to documentation.
3. 3Represent you directly. The examiner deals with us, not you. We control the narrative, the pace, and what is provided.
4. 4Negotiate the findings. Where items are disputed, we argue the law and the facts, and pursue a no-change result or the smallest possible adjustment.
5. 5Close and protect. We confirm the closing letter, address any penalties, and put safeguards in place so the same issue does not recur.

The audit closed with no change, the client owed $0 in additional tax, and never had to speak with the IRS.

An IRS audit (examination) is a review of your return to verify income, deductions, and credits. Audits arrive as correspondence (by mail), office, or field examinations, and they can also come from state agencies over sales tax, worker classification, or residency.

You have the right to professional representation. Our Enrolled Agent handles the examination under Form 2848 - organizing substantiation, answering the examiner's questions, and protecting you from scope creep so the audit stays limited to what was actually flagged.

Audit facts worth knowing:

• Most audits are correspondence audits over a single deduction - with the right records they often close no-change.
• You are not required to talk to the IRS yourself; representation is your right.
• Good contemporaneous records (mileage logs, receipts, bank statements) win audits.
• The IRS generally has three years to audit a return - longer if substantial income was omitted.