I received an IRS Audit Letter. What should I do?

Review the IRS audit letter carefully. Usually, the letter will state one of two things. It may tell you that the audit process is just beginning and it will provide information on what to do next. Otherwise, it may tell you the dollar amount the IRS expects you to pay with an explanation of the suspected error. Either way, do not necessarily anticipate the worst and panic. Most importantly, do not ignore the IRS. This makes what could be a non-issue or small problem a very big one. Respond effectively to all IRS communications and keep all deadlines.