If you’ve received a notice from the IRS, you might be asking: What should I do if I’m being audited? The word “audit” strikes fear into many individuals and business owners—but with the right preparation and the support of a trusted tax audit attorney, it doesn’t have to.
At The Law Office of Pietro Canestrelli, A.P.C., we provide strategic IRS audit help to clients in Temecula, San Diego, and across Southern California. This guide outlines what triggers an audit, the different types of IRS audits, and how to prepare for each step of the process. If you’re searching for a California tax lawyer who can represent you effectively, this article is your starting point.
What Is a Tax Audit?
A tax audit is a formal review by the Internal Revenue Service (IRS) or state tax agency to determine the accuracy of your tax returns. These audits are conducted to verify reported income, deductions, credits, and other financial details. Hiring a knowledgeable IRS audit lawyer can make a major difference in the outcome.
Why Am I Being Audited by the IRS?
There are multiple reasons the IRS may decide to review your return. Here are some common IRS audit triggers:
Unreported income (e.g., freelance work, cryptocurrency gains, investment income)
High or unusual deductions, including large charitable contributions or excessive business expenses
Discrepancies between your return and third-party forms like W-2s or 1099s
Self-employment or cash-intensive businesses, which are considered audit risks
Foreign bank accounts or assets, particularly if not properly disclosed under FATCA
Income level—higher earners are statistically more likely to be audited
If you suspect one of these issues applies to you, it’s time to speak with a tax lawyer in Temecula or San Diego for guidance.
What Are the Different Types of IRS Audits?
Understanding the type of audit you’re facing helps determine the appropriate response. Here are the three main types:
1. Correspondence Audit
This is a mail-based audit. The IRS will request specific documentation by mail. It’s typically limited in scope and often resolved quickly with proper IRS audit representation.
2. Office Audit
You’ll be asked to visit a local IRS office. This type of audit is more detailed and often involves multiple tax issues. Bringing an experienced IRS audit defense attorney is strongly advised.
3. Field Audit
The most extensive form of audit, where an IRS agent visits your home or business. These are common for business owners or individuals with complex financial situations. If you’re facing a field audit, you need a qualified California IRS attorney to protect your rights.
How to Prepare for a Tax Audit
The best way to survive an audit is to prepare thoroughly. Here’s how:
Step 1: Read the IRS Audit Letter Carefully
Audit letters outline:
The tax year being reviewed
The issue(s) under question
The deadline to respond
A list of required documents
Don’t ignore the notice. If you’re not sure how to interpret it, contact a Temecula tax audit lawyer immediately to avoid delays and penalties.
Step 2: Gather and Organize All Requested Records
This is one of the most critical parts of your IRS audit preparation. You should collect:
W-2s, 1099s, and other income statements
Receipts for deductions (charitable donations, business purchases)
Bank statements
Mileage logs and travel expenses
Invoices, contracts, or other business records
Tax returns from prior years
Working with a tax attorney for audit defense helps ensure your documentation is complete and presented professionally.
Step 3: Reconstruct Missing Records if Needed
If you’ve lost records, don’t panic. You may be able to:
Retrieve receipts from vendors
Pull records from your bank or credit card
Rebuild mileage logs from calendars or GPS
Provide sworn statements or explanations
Your IRS audit attorney can help you navigate this process and demonstrate good faith efforts to comply.
Step 4: Know the Tax Laws that Apply to You
Your deductions or credits may be valid—but you’ll need to cite IRS code or tax law that supports them. A California tax lawyer can explain how the law applies and defend your filing position.
For example, business owners often claim home office deductions or Section 179 depreciation. If these are challenged, your attorney will present the legal framework that supports their legitimacy.
Step 5: Consult a Tax Lawyer Early
You don’t need to face the IRS alone. In fact, you shouldn’t. A licensed IRS tax attorney in San Diego or Temecula can:
Communicate with the IRS on your behalf
Prepare and organize documents professionally
Protect you from overreach or self-incrimination
Limit the audit’s scope
Handle appeals or litigation if needed
Our firm provides IRS representation for audits, including cases involving suspected fraud, underreporting, or omitted income.
Step 6: Be Concise, Not Conversational
Whether you’re mailing a response or attending an IRS meeting, provide only what’s requested. Avoid volunteering unrelated information or documents.
Your IRS audit lawyer will help control the flow of communication to keep the focus on relevant issues and minimize exposure.
Step 7: Remain Cooperative and Respectful
The IRS has broad authority, but the agents are simply doing their jobs. Remaining calm, courteous, and professional can go a long way. Let your attorney handle the legal and technical conversations.
After the Audit: What Are the Possible Outcomes?
Once the audit concludes, you’ll receive a report summarizing the findings. These are the potential outcomes:
1. No Change Audit
Your return was accepted as filed. No additional taxes owed.
2. Agreed Audit
The IRS proposes changes, and you agree. You may owe taxes, interest, or penalties.
3. Disagreed Audit
You disagree with the findings. At this stage, you can appeal or take the case to Tax Court.
At The Law Office of Pietro Canestrelli, we’ve successfully negotiated adjustments, removed penalties, and fought back against unfair assessments. If you disagree with your audit results, we can guide you through the IRS appeals process.
IRS Audit Appeals: Your Legal Rights
Don’t accept the IRS’s decision if you believe it’s wrong. As your IRS appeals attorney, we can:
File a formal appeal to the IRS Office of Appeals
Request a Collection Due Process (CDP) hearing
Submit an Offer in Compromise to reduce your tax debt
Represent you in U.S. Tax Court if necessary
How to Reduce Your Risk of Future IRS Audits
Avoiding audits in the future involves strategic planning. Here’s what we recommend:
Hire a licensed tax professional or tax attorney for complex returns
File your returns on time and accurately
Keep records for at least 3 to 7 years
Avoid making suspicious or exaggerated claims
Report all income, including digital payments and cryptocurrency
We offer proactive tax compliance services to reduce audit risks for both individuals and businesses.
Why Work with The Law Office of Pietro Canestrelli, A.P.C.?
If you’re being audited, the choice of legal representation matters. Our law office provides:
Expert IRS audit defense services
Personalized tax legal advice
In-depth knowledge of federal and California tax law
Assistance with IRS correspondence, appeals, and litigation
Support for business audits, self-employed taxpayers, and high-net-worth individuals
With offices in Temecula and San Diego, we proudly represent clients across California and the United States.
Conclusion: Take Control of Your Audit Outcome
The IRS audit process doesn’t have to derail your finances or peace of mind. With experienced legal counsel and thorough preparation, you can move through the process confidently and minimize financial exposure.
If you’re facing an audit or have received an IRS notice, contact The Law Office of Pietro Canestrelli, A.P.C. for professional IRS audit help and legal guidance. Our dedicated team is here to defend your rights, manage the process, and pursue the best possible outcome.
Schedule your confidential consultation today.