It’s Tax Season! Know Your Legal Rights During an IRS Audit
Getting that letter from the IRS? Not exactly the kind of mail you frame.
First things first: an audit is not a criminal accusation. It’s not a moral judgment. It’s not a declaration that you’ve done something shady. It’s a review. That’s it.
And like most things in life that involve fine print, deadlines, and official letterhead, this is when having a lawyer friend comes in handy.
Why Would the IRS Audit Someone in the First Place?
Before we get into your rights, it helps to understand why audits happen in the first place. Most aren’t triggered by data.
The IRS compares your return to information it receives from employers, banks, and other third parties, and if something doesn’t match, it notices. Large deductions relative to income, repeated business losses, self-employment income, major financial transactions (like selling property or investments), or even returns that fall outside statistical norms can also prompt a review. Sometimes it’s complex. Sometimes it’s random. But most of the time, it’s math.
Here’s what you need to know about your legal rights during an IRS audit:
1. You Have the Right to Be Informed
The IRS can’t just vaguely say, “Hey… we have questions.” They’re required to clearly explain:
Why your return is being examined
What they need from you
What happens if you agree (or disagree) with their findings
In other words: no riddles or guessing games.
If anything in that letter feels confusing, unclear, or overly technical (which, let’s be honest, is kind of their brand), that’s your cue to pause before responding. You deserve to understand exactly what’s being asked of you.
2. You Have the Right to Representation
This is a big one. You do not have to face an audit alone.
You have the right to:
Hire an attorney
Work with a CPA
Authorize someone to speak to the IRS on your behalf
If the thought of sitting across from an IRS agent makes your stomach flip, good news: you can appoint someone else to do the talking. That includes having someone review everything before you send it in. Because once you send something, it’s officially in the chat.
This is exactly when a lawyer friend earns their keep.
3. You Have the Right to Professional and Respectful Treatment
The IRS is required to treat you with courtesy and professionalism. Full stop.
You are not required to:
Answer questions that are irrelevant
Accept rude or inappropriate behavior
Feel pressured into agreeing with something you don’t understand
If something feels off, it’s okay to slow things down. You can ask for clarification. You can request that communication go through your representative. You can take time to review documents.
4. You Have the Right to Privacy and Confidentiality
Audits aren’t public spectacles. The IRS is required to:
Respect your privacy during the audit process
Keep your tax information confidential
They can only request information that is relevant to the return being audited. If a request feels overly broad or unrelated, that’s worth a second look.
When it comes to your finances, less oversharing is usually more.
5. You Have the Right to Challenge the IRS’s Position
Here’s something people don’t always realize: you can disagree.
If the IRS proposes changes to your return and you don’t think they’re accurate, you have the right to:
Provide additional documentation
Submit a written explanation
Request a conference with an IRS manager
File an appeal
You can even take your case to Tax Court if it comes to that.
6. You Have the Right to Finality
You’re entitled to know:
How long you have to challenge the IRS’s position
How long the IRS has to audit you
When the audit is officially over
Generally, the IRS has three years from the date you filed your return to audit it (with some exceptions for substantial underreporting or fraud). This does not go on forever.
7. You Have the Right to Pay Only What You Owe
Not a penny more.
If the audit results in additional taxes, you have the right to:
Request a payment plan
Explore settlement options
Discuss alternatives if paying in full creates hardship
If there’s an issue, there are structured options. The key is responding thoughtfully. Not reactively.
What You Should Not Do During an Audit
A quick, loving reality check:
Don’t ignore the letter.
Don’t send more information than requested.
Don’t guess at answers.
Don’t sign anything you don’t fully understand.
The Bottom Line
The best things in life come with fine print. So do audits. The difference? You don’t have to decode it alone.
Before you respond.
Before you send documents.
Before you agree to anything.
Because when it comes to life’s little legal moments (even the ones with federal letterhead) your future self will thank you.