How to prepare for an IRS audit: documentation checklist
Preparation is mostly organization: reconstruct income, tie bank statements to books, and gather substantiation for major deductions.
Read article →Audits proceed through Information Document Requests (IDRs) and possibly interviews. Understand the process and when to involve a CPA or tax attorney.
WorkMinty publishes general educational information for small business owners. It is not tax, legal, or accounting advice. Tax rules change and vary by state and situation. Consult a qualified CPA, enrolled agent, or attorney before making decisions or responding to a government audit.
Educational only · Last reviewed May 30, 2026
An IDR is a formal list of records the examiner wants. Respond completely, accurately, and by the deadline.
Typical IDRs request:
You may be asked to meet with the examiner. Tips:
Form 2848 (Power of Attorney) allows an enrolled agent, CPA, or attorney to represent you. Most owners use professional representation for field exams.
You have the right to professional representation, to appeal many findings, and to understand how adjustments were calculated. The IRS Publication 1 outlines taxpayer rights.
Preparation is mostly organization: reconstruct income, tie bank statements to books, and gather substantiation for major deductions.
Read article →A Schedule C exam usually focuses on income completeness, expense substantiation, and categories with high abuse rates (meals, travel, auto, home office).
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