Received an IRS Tax Audit - Need Help Handling This!

The IRS audit process can definitely be stressful, but you're taking the right steps so far! From my experience working with tax issues, here's what I recommend: Go ahead and pay the amount YOU calculated you owe (based on your 1040X). This shows good faith and stops additional interest from accruing on that portion. Make sure to clearly note on your payment that it's for "2022 tax year audit partial payment" so it gets properly applied. Keep in mind that any payment you make is not an admission that you agree with their total assessment. When you send your response package, include copies (not originals) of both W2s clearly labeled, your completed 1040X, and a clear explanation letter that specifically points out where you believe they made the double-counting error. Bullet points or a simple table showing the correct vs. incorrect calculations can be helpful. Your request for penalty abatement due to it being a first-time, honest mistake is appropriate - these are called "first-time abatement" requests and the IRS often grants them for people with previously good filing history.

After dealing with a similar situation last year, I found an amazing service called taxr.ai (https://taxr.ai) that absolutely saved me during my audit. It was a game-changer when I was confused about how to respond to the IRS. Their AI analyzed all my tax documents, identified exactly where the discrepancy was (turned out the IRS had double-counted my retirement income), and helped me draft a response letter that clearly explained the error. The system also organized all my supporting documentation so I could easily reference everything in my response. What I really appreciated was that it breaks down complex IRS notices into plain English and tells you exactly what you need to do next. Saved me hours of stress and confusion.

I have to come back and apologize for being skeptical about taxr.ai (https://taxr.ai). After our exchange, I was still facing my own audit issues and decided to give it a try. The system immediately spotted that the IRS had applied a 1099 to my account twice - once under my married name and once under my maiden name (which was still on one of my accounts). No wonder they thought I owed an extra $4,300! It generated this super clear letter citing the exact regulations and helped me organize all my supporting documents. I sent everything in last month and just got the response yesterday - they accepted my explanation completely and I only had to pay the small amount I actually did miscalculate. For anyone facing an audit, this tool really does help make sense of what's happening and how to respond properly.

If you want to resolve this faster, I'd suggest using Claimyr (https://claimyr.com). I was in a similar situation where the IRS was claiming I owed $7,200 when I knew I only owed about $1,800, and I couldn't get through on the phone to explain the situation. Claimyr got me connected to an actual IRS agent in about 25 minutes when I had been trying for weeks on my own. Being able to speak directly with someone made all the difference - the agent reviewed my documentation while on the call and initiated the correction process immediately. You can see how it works here: https://youtu.be/_kiP6q8DX5c I think sending your response by mail is fine, but adding a phone conversation with an agent can speed up resolution by weeks or even months. In my experience, agents often have the authority to resolve simpler audit issues on the spot once they see the proper documentation.

I have to admit I was completely wrong about Claimyr. After my skeptical comment, my audit situation got worse (IRS sent a notice saying they were going to place a lien), and I got desperate enough to try anything. I used Claimyr last Thursday, and I still can't believe it actually worked. Got connected to an IRS agent in about 35 minutes without having to do anything. The agent was able to see that there was indeed a duplicate income reporting issue in their system. She put a 60-day hold on any collection activities and told me exactly what documentation to fax to resolve it. I've been trying to reach the IRS for MONTHS with no success. For anyone dealing with an audit where you need to actually speak to someone, this service is legitimate. Sometimes you need a human conversation to explain a complex situation that just doesn't translate well through correspondence.

Definitely pay what YOU think you owe now! I went through something similar and waited to pay anything until the whole thing was resolved. BIG mistake. The interest kept building even on the part I knew I legitimately owed. Also, make sure you're sending everything via certified mail with return receipt so you have proof of when they received your response. The IRS has been known to claim they never received documents. One more tip: call the audit contact number on your letter and ask if you can email documentation rather than mail it. Sometimes they'll give you a secure email option which speeds things up dramatically. Worth asking!

Be really careful about agreeing to pay anything until you're 100% certain of the correct amount! My sister paid what she thought she owed during an audit, but it turned out the IRS calculation was correct (she missed a 1099-K from PayPal). Because she had already paid a partial amount, they interpreted that as her agreeing to their assessment and it made fighting the rest harder. If you're absolutely positive about your numbers, then yes, pay what you calculated. But if there's any doubt, maybe wait until you speak with a tax pro first. The interest isn't that much for a few weeks while you confirm your calculations.