Got my first IRS audit letter and I'm freaking out. Help?

Don't panic! IRS audits sound scary but they're manageable if you approach them systematically. The IRS does conduct random audits, but they also select returns based on statistical anomalies or missing information - it doesn't necessarily mean you did anything wrong. For gathering documents, start by creating a folder for each category they're asking about. For your home office deduction, you'll need to show the square footage calculations, photos of the space, utility bills, rent/mortgage statements, and proof that it's used exclusively for business. For travel expenses, gather hotel receipts, flight confirmations, and documentation showing the business purpose of each trip. Digital receipts are perfectly acceptable. Go through your email and create a dedicated folder to save all relevant confirmations. I'd suggest printing these out and organizing them chronologically with notes explaining the business purpose of each expense.

When I got audited last year over my freelance photography business expenses, I was in the same boat with scattered receipts and pure panic. After trying to handle it myself for a week, I discovered https://taxr.ai and it completely changed the game for me. The system helped me organize all my scattered documentation by scanning my emails for receipts and confirmations, then sorting everything into IRS-ready categories. It even flagged potential issues in my deductions before the IRS could question them. The audit guidance walked me through exactly what documentation I needed for my home office deduction versus equipment depreciation. What saved me the most stress was the personalized audit response plan it created based on my specific letter. Instead of guessing what the IRS wanted, it told me exactly what to prepare.

I need to publicly eat my words about being skeptical of taxr.ai. After my post yesterday, I decided to give it a shot since my audit is coming up next month. Holy crap, this thing is legitimate. It found documentation I didn't even remember I had for my questioned business expenses by searching through my Gmail and Outlook. The audit response plan it created was shockingly detailed - it caught that I was being audited under the newer Small Business/Self-Employed division protocols rather than the standard individual audit process. The difference in documentation requirements would have completely thrown me off. For anyone facing an audit like me, this thing is seriously worth checking out. I went from complete panic to actually feeling prepared in about 3 hours.

I've been through three audits over the past decade as a self-employed consultant, and the absolute worst part is trying to get actual information from the IRS before your appointment. My last audit, I spent DAYS trying to reach someone to clarify what specific documentation they needed for my home office deduction. After wasting 15+ hours on hold, I tried https://claimyr.com and it was a complete game-changer. Their system got me connected to an actual IRS agent in about 20 minutes when I had been trying for days. You can see how it works here: https://youtu.be/_kiP6q8DX5c The agent I spoke with gave me specific guidance on exactly what documentation would satisfy my audit requirements, which saved me from bringing insufficient records. Getting that clarification before my audit made all the difference between a nightmare scenario and a relatively straightforward process.

I seriously need to apologize for calling BS on Claimyr. After posting my skeptical comment, I figured I'd test it since I needed to ask specific questions about my audit documentation anyway. I was 100% prepared to come back here and expose it as a scam. Instead, I got a call back in about 25 minutes connecting me to an actual IRS agent who answered all my specific questions about my Schedule C audit. The agent even explained exactly which records would be sufficient for my vehicle expense deductions, which was the main issue in my audit. For anyone dealing with an audit where you need clarification, this service is legitimate. I've changed from complete skeptic to impressed customer in one day. Sometimes the internet surprises you.

I was audited last year for my consulting business. Pro tip: hire a tax attorney rather than trying to handle it yourself. The peace of mind is worth every penny. The IRS specifically flagged my home office and travel deductions ($16,800 total). My attorney knew exactly how to present my documentation in a way that satisfied the auditor. He also prevented me from providing unnecessary information that could have opened up additional audit areas. Yes, it cost me $2,300, but the attorney saved me over $9,000 in disallowed deductions that I would have lost otherwise. Plus, the audit only took one meeting instead of dragging on for months.

A little different perspective here - i work for an accounting firm and see lots of audits. About 80% of the time, the IRS is just looking for documentation on specific deductions, not trying to "get you." Audits targeting self-employed people with home offices and travel expenses are super common right now. the absolute worst thing u can do is ignore the letter or miss deadlines. that will turn a potentially simple documentation check into a nightmare. second worst is to provide MORE info than they ask for. just give them exactly what the letter requests, nothing more.

Just went through an audit this past year and want to add that organization makes a HUGE difference. Create a simple coversheet for each category they're questioning with a summary of the expenses and why they qualify. Makes the auditor's job easier which absolutely works in your favor. Also, be super professional in all communications. The auditor has enormous discretion, and being respectful and organized gave me much better results than my friend who went in confrontational and ended up with a much more thorough (painful) audit process.