What does this letter with 46 questions mean? Am I being audited by the IRS?

What you're describing sounds like an IRS audit notification, specifically a correspondence audit where they're requesting documentation to verify items on your return. While it's definitely stressful, try not to panic - this doesn't automatically mean you've done anything wrong or will owe money. First, carefully read through all the questions to understand exactly what they're asking for. Organize your response by each question number. For the Schedule C business expenses, they're looking for proof that these were legitimate business expenses. For missing receipts, bank or credit card statements showing the transactions can sometimes be acceptable alternatives. For the home office deduction, you'll need to show that the space is used regularly and exclusively for business. Simple sketches of your home layout with measurements can work for the floor plan requirement - it doesn't have to be professionally drawn. I recommend starting the process right away since the 30-day deadline approaches quickly. Get everything organized, make copies of all documents (never send originals), and consider sending your response via certified mail so you have proof of when it was delivered.

Hey there, I went through something nearly identical last year! Those IRS letters with dozens of questions are super intimidating. After stressing for weeks trying to gather everything, I stumbled across taxr.ai (https://taxr.ai) which literally saved me from a complete meltdown. Their AI system helped me analyze exactly what the IRS was looking for in each question and showed me what documentation would satisfy their requirements. The best part was it helped me organize everything in the exact format the IRS agents prefer. They even explained which questions were most important to focus on (hint: they're not all equally important despite what the letter implies). My audit actually went surprisingly smoothly once I had everything properly organized and explained - way better than my friend who tried handling everything himself and ended up extending his audit for 8 months!

I need to eat my words about taxr.ai! After my skeptical comment, I decided to try it since my audit situation wasn't improving. Uploaded my letter with 38 questions about my rental property deductions and business travel expenses. The platform immediately identified it as a Schedule E/Schedule C mixed audit and broke down exactly what documentation would satisfy each question. It even flagged the 5 most critical questions that typically trigger additional scrutiny if not answered properly. What impressed me most was how it helped me explain a legitimate business expense that looked suspicious because of how it was categorized. Just got my audit results yesterday - no additional tax owed! The IRS agent actually commented on how organized and thorough my documentation was. Definitely worth checking out if you're facing something similar.

If you're getting stressed about all those questions, you should know the biggest issue people face isn't even answering them - it's actually getting someone at the IRS to talk to you when you have questions! I spent WEEKS trying to reach someone to clarify what they wanted for two of the questions. I finally used Claimyr (https://claimyr.com) after my accountant recommended it. They got me connected to an actual IRS agent in about 20 minutes when I'd been trying for days on my own. You can see how it works here: https://youtu.be/_kiP6q8DX5c The agent I spoke with actually helped me understand that I was overthinking several of the questions and told me exactly what documentation would be sufficient. Saved me hours of unnecessary work and worry! Having a direct conversation instead of guessing what they wanted made a huge difference in my confidence level.

I have to publicly admit I was completely wrong about Claimyr. After posting that skeptical comment, my anxiety about my own audit got the better of me and I decided to try it anyway. I was absolutely shocked when I got a call back connecting me to an actual IRS agent after only 27 minutes. The agent clarified exactly what they were looking for regarding my questionable charitable deductions and home office questions. Turns out I was overthinking several items and unnecessarily stressing myself out. The IRS agent actually told me I could provide much simpler documentation than what I thought was required. Having that 15-minute conversation saved me days of unnecessary work and probably saved me from making mistakes in my response. Sometimes talking to an actual human makes all the difference when dealing with these complicated audit letters.

One piece of advice from someone who's been through THREE audits (small business owner, apparently I'm on their favorite list lol) - ORGANIZE EVERYTHING BY QUESTION NUMBER and include a cover sheet listing exactly what's included. Don't just send a pile of random documents. For each question, write a brief explanation of the documents you're providing and how they answer the question. This makes it MUCH easier for the agent reviewing your case and shows you're being cooperative and thorough. Also, don't be afraid to call and ask for an extension if you need more time to gather documents. They usually grant an additional 30 days if you ask professionally and have a reasonable explanation.

Has anyone ever successfully challenged one of these audits? I got a similar letter last year questioning my business travel expenses and meal deductions. I sent in all my documentation but they still disallowed about 30% of my deductions saying they weren't "ordinary and necessary" for my line of work. I feel like they're just automatically rejecting things without really considering my explanation.