Preparing for an IRS Office Audit: Checklist

Quick overview

An IRS office audit is a limited, in-person review of specific items on a tax return (commonly income items, business expenses, or credits). The IRS usually notifies you by mail and lists the records it wants. Office audits are less expansive than field audits but more detailed than correspondence audits. With focused organization and accurate documentation, most office audits are resolved with minimal adjustment.

Sources: IRS Office Audit Checklist (IRS) — https://www.irs.gov/businesses/small-businesses-self-employed/irs-office-audit-checklist; Taxpayer Bill of Rights (IRS) — https://www.irs.gov/taxpayer-bill-of-rights

Why this checklist matters (In my practice)

In my 15 years helping clients through audits, the difference between an efficient outcome and a prolonged dispute usually comes down to preparation. Taxpayers who hand the examiner a single, well-organized packet that maps documents to the return often shorten the meeting and reduce follow-up requests. Conversely, scattered records or missing receipts invite skepticism, additional scrutiny, and sometimes penalties.

This checklist gives you the practical steps and file-by-file guidance to prepare for an IRS office audit and to protect your rights during the process.

Before the appointment: immediate steps (Checklist)

1. Read the IRS letter carefully. Note what years and which items are under review and the date, time, and location of the appointment. The notice usually explains whether you should bring originals, copies, or both. (IRS) — https://www.irs.gov
2. Do not ignore deadlines. The notice will include scheduling instructions and a response deadline. Missing deadlines can forfeit some rights or escalate collection activity.
3. Decide on representation. You can attend yourself, bring a CPA, enrolled agent, or an attorney, or appoint a representative using IRS Form 2848 (Power of Attorney). If you hire help, notify the IRS in writing promptly. See “When to Hire a Tax Professional for an Audit or Appeal” for guidance on when to bring a pro: https://finhelp.io/glossary/when-to-hire-a-tax-professional-for-an-audit-or-appeal/
4. Make copies of everything. Gather photocopies or scanned PDFs of all records for the years under audit before the meeting. Keep originals safe but bring them if the notice requests originals.
5. Build a cover letter for the packet. A simple one-page cover sheet that summarizes what you’ve included and explains any unusual items makes the examiner’s job easier and shows organization.

Core documents to gather

Organize documents by category and then by tax return line so the examiner can verify entries quickly.

• Tax returns for the year(s) under audit (Form 1040, Schedules, Form 1065, 1120, etc.).
• Income proof: W-2s, 1099s (MISC/NEC, INT, DIV), K-1s, brokerage statements, year-end summaries.
• Business records: General ledger, profit & loss and balance sheet, sales receipts, merchant statements, invoices, canceled checks, and logbooks.
• Expense substantiation: Receipts, vendor invoices, credit card statements, mileage logs (date, miles, purpose), meals & entertainment receipts with business purpose.
• Bank & credit card statements (audit year and optionally the year after for context).
• Contracts, leases, loan documents, and closing statements (sale/purchase of property).
• Records supporting credits and deductions: Form 1098 (mortgage interest), charitable donation receipts, medical expense records where applicable, childcare receipts, and education statements (1098-T).
• Payroll records if you have employees: Forms 941/940, payroll registers, W-2/W-3 copies.
• Prior audit or correspondence history, including IRS letters and prior adjustments.

Refer to our guide on organizing documentation for audits for step-by-step file setup: https://finhelp.io/glossary/how-to-organize-supporting-documentation-for-a-tax-audit/

How to organize the packet (practical layout)

1. Use a 3-ring binder (or a well-labeled digital PDF) with a table of contents.
2. Split sections by return page or schedule (e.g., Income, Cost of Goods Sold, Expenses, Credits).
3. Attach a red tab or sticky note to any document that directly supports a line item — e.g., a receipt with the tab labeled “Schedule C, line 24a – Auto expense.”
4. Number each supporting document and cross-reference it on the spreadsheet that ties each document to specific return lines.
5. Provide a one-page timeline or narrative when events are complex (like property sales, casualty losses, or multiple revenue streams).

Tip from my practice: create a single spreadsheet (PDF) called “Document Index” that the examiner can open first. Include column headers such as: Document ID, Document Type, Date, Amount, Return Line, Location in Binder. This reduces back-and-forth requests.

What to bring to the interview

• Your organized binder or digital packet and an extra copy for the IRS examiner.
• A one-page executive summary explaining any large or unusual items.
• Photo ID and a copy of the audit notice.
• Your professional representative (if you’ve hired one) or signed Form 2848 authorizing them to speak for you.
• Calculators, a notepad, and pens. Take notes during the meeting and record names and badge numbers of IRS staff.

During the audit: behavior and best practices

• Be concise and factual. Answer questions directly and avoid offering extra information that wasn’t requested.
• Let your representative speak if you’ve hired one. If you represent yourself, remain calm, polite, and professional.
• Don’t sign forms you don’t understand. If asked to sign a form indicating acceptance of adjustments, ask for time to review or to consult your advisor.
• If the examiner wants to copy original documents, ask for a receipt or document control number and request copies back after the audit.

Common issues examiners focus on

• Unreported income from 1099s or bank deposits versus reported income.
• Unsupported business expenses (meals, travel, home office, auto).
• Inconsistent records or large round numbers without receipts.
• Recharacterized deductions (personal vs business) and substantiation for credits.

Understanding the IRS focus can help you preempt questions by assembling the clearest possible proof for those categories.

If the examiner proposes changes

• Request the proposed adjustments in writing and the basis for each change.
• Ask how the adjustment was calculated and request reference to law, code sections, or policy if needed.
• You may agree, pay, or request reconsideration. If you disagree, you can file an appeal or pursue mediation through the IRS Office of Appeals (https://www.irs.gov/appeals).
• Be mindful of deadlines for protest or appeal; note them immediately.

Appeals, collections, and penalties

• If the IRS assesses additional tax, it may also assess interest and penalties for underpayment. Penalties depend on facts and whether the error was negligent or intentional. (IRS)
• You have the right to appeal an audit decision within the IRS or pursue Tax Court if necessary. Appeal processes and alternative dispute resolution options are available. See IRS Office of Appeals for details.

Digital records and secure transmission

• The IRS accepts electronic files in many cases. If you transmit sensitive documents, use secure methods (encrypted PDFs, secure portals) rather than email.
• Keep an unedited backup of original digital files in a read-only format (PDF/A) to prevent accidental alteration.

Practical timeline example (typical flow)

• Day 0: Receive audit notice by mail.
• Days 1–7: Review notice, decide on representation, and begin document collection.
• Days 7–21: Assemble and copy records; prepare cover letter and document index.
• Days 21–35: Deliver packet or attend scheduled interview. Bring originals if requested.
• Post-meeting: Examiner may ask for follow-up documents within 30 days. Expect a proposed report or resolution within 30–90 days of the audit meeting.

Timelines vary; some complex cases take longer. If the IRS requests additional documents, respond promptly and in writing.

Common mistakes to avoid

• Bringing loose, uncategorized receipts that don’t match return lines.
• Providing incomplete mileage logs or vague business purpose statements.
• Signing away rights under pressure without time to review.
• Waiting until the last minute to gather records.

Resources and further reading

• IRS Office Audit Checklist and guidance (IRS): https://www.irs.gov/businesses/small-businesses-self-employed/irs-office-audit-checklist
• Taxpayer Bill of Rights (IRS): https://www.irs.gov/taxpayer-bill-of-rights
• When to hire a pro: https://finhelp.io/glossary/when-to-hire-a-tax-professional-for-an-audit-or-appeal/
• Organizing documents: https://finhelp.io/glossary/how-to-organize-supporting-documentation-for-a-tax-audit/
• Preparing a document packet for correspondence audits (related): https://finhelp.io/glossary/preparing-a-document-packet-for-an-irs-correspondence-audit/

Final checklist (one-page summary)

• Read the IRS notice and mark dates.
• Decide on representation; file Form 2848 if applicable.
• Collect tax returns and all supporting documents for the audit year(s).
• Create a Document Index mapping each item to return lines.
• Make copies and prepare a cover letter and summary.
• Bring binder and extra copies to the meeting; take notes.
• If you disagree with findings, note deadlines and consider appeal options.

Professional disclaimer: This article is educational and does not replace personalized tax advice. For specific questions about your audit, consult a qualified tax professional or attorney. The information above reflects IRS guidance as of 2025 but may change; consult the IRS website for updates.

Author note: In my practice, clients who use the Document Index approach reduce audit time and requests for follow-up documents. If you feel overwhelmed, bring a credentialed representative early in the process to manage communications and protect your rights.