An IRS Audit (Part III)

What do I need to provide for an IRS Audit?

The IRS will provide you with a written request for the specific documents they want to see. Examples are listed below.

The IRS accepts some electronic records that are produced by tax software. The IRS may request those in lieu of or in addition to other types of records. Contact your auditor to determine what they can accept.

The law requires you to keep all records you used to prepare your tax return – for at least three years from the date the tax return was filed.

Examples of records the IRS might request.

Every audit focuses on certain aspects of a return, but the kinds of records they request will most likely be on the following list. No record can stand on its own. You must include the circumstances surrounding any document you send. Remember, only send us copies.

  • Receipts – Present these by date with notes on what they were for and how the receipt relates to your business. In addition to providing the dollars paid or received for a service or product, certain kinds of receipts can prove mileage.
  • Bills – Include the name of the person or organization receiving payment, the type of service and the dates you paid them.
  • Canceled checks – Group these with copies of the bills they paid and any applicable employer reimbursement.
  • Legal papers – Include a description of what the case was about, when it happened and how it relates to your business, credit or deduction. Examples include:
    • Divorce settlements including custody agreements
    • Criminal or civil defense papers
    • Property acquisition
    • Tax preparation or advice

Next week additional examples of documents information on the IRS Audit (IRS web site) (TTT 01/26/2021)