IRS Audit Notice Confusing?

Why IRS Notices Are Hard to Understand

IRS audit notices use technical tax terminology, cite Internal Revenue Code sections, and reference forms and schedules that may be unfamiliar. The notices are formatted for compliance with legal requirements, not readability.

Common sources of confusion include unclear instructions, references to prior notices, requests for documents by tax form number, and vague explanations of the issues under examination.

What the IRS Is Actually Asking For

Despite confusing language, most audit notices request straightforward information:

• Receipts or invoices supporting deductions claimed
• Bank statements or financial records verifying income
• Explanations of discrepancies between third-party reports and your return
• Documentation of eligibility for credits or exemptions
• Proof of expenses claimed for business, education, or medical purposes

The notice will identify the tax year, specific line items on your return, and the type of documentation required.

What NOT to Do

• Do not ignore the notice because you do not understand it
• Do not call the IRS without first identifying what they are requesting
• Do not respond without reviewing your tax return for the year in question
• Do not assume the IRS has made an error without checking your records
• Do not provide documents that are not requested

What to Do Next

Identify the notice number (usually in the top right corner) and the tax year under examination. Look for sections titled "What You Need to Do" or "Information We Need." These sections explain what documentation to provide and the response deadline.

Pull your tax return for the year in question and compare it to the notice. Identify which deductions, credits, or income items the IRS is questioning. Gather supporting documents that address those specific items and prepare a written response.

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