Background and why it matters

A clear chronology turns a pile of documents into a narrative the auditor can follow. In my 15 years helping clients, I’ve seen chronologies shorten review time, reduce follow-up requests, and prevent misplaced facts. The approach is proactive: assemble evidence and context so the IRS sees the sequence, not just isolated numbers (IRS.gov, “What to Know About an Audit”).

Step-by-step: build a usable chronology

  1. Start with the audit scope and deadlines
  • Note the IRS notice date, the tax year under review, and response deadlines. Record the auditor’s name and contact information.
  1. Gather source documents
  1. Create a dated timeline entry for every material event
  • For each entry include: date, short title (one line), 1–2 sentence description, parties involved, and a pointer to exhibit(s) (file name or binder tab).
  • Example format: 2023-02-01 — Meeting with CPA. Discussed duplicate expense entries; supporting receipts in Folder A, Tab 4.
  1. Link entries to exhibits and page numbers
  1. Flag gaps and include explanatory notes
  • If a document is missing, note why and what you have done to obtain it. Transparency helps; auditors value quickly-understandable explanations (IRS guidance on audits).
  1. Keep it concise and update continuously
  • A chronology is a working document. Update it after phone calls, letters, or new evidence.

Practical examples (real-world application)

  • Small business income discrepancy: A sole proprietor used a chronology to show the timing of supplier credits and corrected bank deposits, attaching supplier invoices to the dated entries. That eliminated a proposed adjustment.
  • Missing expense documentation: For one client, a chronology that linked credit-card receipts to expense categories and refunded vendor credits reduced repeat questions from the auditor.

Who should prepare one

Anyone facing an IRS audit: individuals, sole proprietors, partnerships, and corporations. If you work with a tax pro or representative, prepare the chronology together. It’s also useful before appeals or collection discussions.

Practical tips from my practice

  • Use a spreadsheet or audit software: columns for date, event, description, parties, exhibits, and status.
  • Start broad, then refine: draft high-level events, then add specific documents and exhibit pointers.
  • Use clear file names and tabbed dividers: match exhibit labels to your chronology entries exactly.
  • Time-stamp communications: save PDFs of emails and note the date/time of phone calls with a short recap.
  • Prioritize relevance: include only events that directly affect the issue(s) under audit.

Common mistakes to avoid

  • Overloading with raw data: don’t paste whole documents into the chronology. Summarize and link to exhibits.
  • Being vague about exhibits: always point to a specific page or file name.
  • Waiting until the last minute: chronologies prepared under time pressure are often incomplete.

Quick FAQ

Q: How long should the chronology be?
A: Long enough to be complete but short enough to be scanned in minutes — typically 1–5 pages for simple issues; longer for complex audits.

Q: Should I send the chronology to the IRS?
A: Yes, include it as a cover or index to your audit packet when appropriate. It helps the auditor and documents your cooperation (see our Preparing an Audit Binder).

Professional disclaimer

This article is educational and reflects professional experience; it is not legal or tax advice for your specific situation. Consult a licensed tax professional or attorney before relying on these steps.

Authoritative sources and further reading

If you’d like, I can provide a downloadable chronology template tailored to individuals or small businesses.