How to Respond to an IRS Audit Notice
Receiving an IRS audit notice can feel overwhelming, but in many cases, the issue can be resolved quickly with the right documentation and guidance. Whether you received a CP2000 under-reporter notice, Letter 566, or a full examination notice, understanding the next steps is critical.
At Bowman Law Firm in Huntsville, Alabama we represent individuals and businesses throughout Madison County and North Alabama in IRS audits, exams, and CP2000 notices.
1. Identify the Type of IRS Notice
Not all audits are the same. The notice you received tells you what the IRS is questioning:
CP2000 Notice (Under-Reporter)
This means income on third-party documents (W-2s, 1099s) doesn’t match what you reported.
Often this happens due to:
Missing 1099s from your tax return
Incorrect income totals
Employer reporting delays
Investment income not included.
Letter 566 (Correspondence Audit)
A mail-based audit requesting proof of:
Deductions
Credits
Schedule C expenses
Dependents
Charitable donations.
Office or Field Audit
More serious audits requiring an in-person exam by an IRS agent.
2. Never Ignore an Audit Notice
If you don’t respond:
The IRS will assess additional tax without your input
Penalties and interest begin accumulating
The IRS may file a tax lien
Collection activity can escalate (levies, garnishments).
3. Gather All Relevant Documents
Common items needed include:
1099s and W-2s
Bank statements
Business expense receipts
Mileage logs
Charitable contribution records
Medical expense documentation
Investment statements
Prior year tax returns.
We review and organize the records to provide the IRS with only what is required.
4. Avoid Calling the IRS Yourself
Taxpayers often make statements that unintentionally broaden the audit. Once you sign a Power of Attorney, we handle contact with the IRS, including:
Speaking with auditors
Submitting documents
Negotiating adjustments.
5. Understand Your Rights as a Taxpayer
You have the right to:
Professional representation
A clear explanation of IRS requests
Appeal an audit result
Only provide information relevant to the issue being examined.
6. Consider Appeal Options if You Disagree
If the IRS makes an incorrect adjustment, you may be able to file:
An appeal to the IRS Office of Appeals
An audit reconsideration
A petition in U.S. Tax Court (strict deadlines)
Get Help Responding to an IRS Audit Notice in Huntsville
If you received an audit letter, CP2000 notice, or exam request, contact Bowman Law Firm for guidance.
We represent taxpayers in Huntsville, Madison County, and throughout North Alabama.
📞 (256) 539-9850
🌐 www.bowmanlawfirm.net
