Have you recently completed an IRS audit? If so, you're probably relieved that the audit process is over. However, you can still expect to receive notices from the IRS regarding your case. One of these notices may be Audit Letter 692. What is Audit Letter 692? What does it explain? What should you do after you receive a copy of this notice in the mail?
What Does Audit Letter 692 Say?
The official name of IRS Audit Letter 692 is "Request for Consideration of Additional Findings". This notice serves as an explanation of what you can do if you want to contest the results of your IRS audit. Along with the notice informing you of your options, you may also receive a statement showing you exactly what your audit findings are and the amount of any additional tax you may owe.
Generally, once you receive Audit Letter 692, you must sign and return a form to show you agree with the findings or you must file an appeal within 15 days. Even if you don't return the agreement form, you won't be able to file an appeal of the results if you wait more than 15 days to respond, so you'll need to take action right away.
When Might You Receive Audit Letter 692?
Taxpayers will only receive Audit Letter 692 after an IRS tax audit has been completed. If you have not been audited recently, you won't receive this letter in the mail. For the majority of taxpayers, the IRS has three years after the filing date of a return to consider requesting an audit. As a result, you shouldn't assume that because you haven't gotten an audit notice yet, you will never be audited at all.
If you're concerned about the possibility of an audit, you can reduce your tax audit risk by only claiming deductions to which you are entitled and maintaining the proper documentation to support your claims throughout the year. Even if you are audited, you may find that your end result is a tax refund increase, rather than an additional payment due.
What to Do if You Need Audit Help
If you're unsure about how to understand your audit results or whether you have a good reason to file an IRS audit appeal, it's important that you talk with an experienced tax professional. For matters relating to IRS audits, it's best to hire a qualified tax expert, such as a tax attorney or an Enrolled Agent.
These professionals have experience not only in audit representation but in communicating with the Internal Revenue Service. Since they are experienced in dealing with audits in particular, they can look at your case and help you decide whether you have grounds to contest the audit findings.
If you've recently received a copy of Audit Letter 692 from the IRS, don't wait to respond to it! Make sure you understand the document and then decide whether to agree to the findings or if you want to file an appeal. Doing so gives you the best chance for avoiding further IRS action.
