Enforcement Defense · Muncie, IN
That IRS letter isn't the end. It's the beginning of a process.
Audits feel personal. They're procedural. What the letter asks for, what the clock allows, and why the single most expensive mistake is walking in alone and improvising.
Under 26 U.S.C. § 7602 and § 7521, taxpayers facing IRS correspondence, office, field audits, or CP2000 discrepancy notices retain the legal right to representation without appearing personally. Licensed Circular 230 CPAs and Enrolled Agents defend Delaware County examinations, restrict scope, and preserve administrative appeals. Call 765-856-9124 for immediate Muncie audit defense.
First: figure out which letter you actually got
CP2000 — the computer noticed something
The most common "audit-like" letter. IRS systems matched your return against W-2s and 1099s and found a gap — unreported income, a missing form. It's a proposal, not a bill: you have 30 days to agree, partially agree, or disagree with documentation (and you can get 60 more days by asking). Agreeing when the computer is wrong costs you money; ignoring it turns the proposal into an assessment automatically.
Correspondence audit — the real thing, by mail
A specific item or two is under examination — a credit, a deduction, business expenses. Everything happens in writing. The trap: taxpayers "explain" in plain English instead of substantiating with records, and examiners disallow what isn't documented.
Office and field audits — in person
Office audits happen at a Taxpayer Assistance Center — Muncie has one at 225 N High St, which is convenient and also exactly why you want a representative between you and the examiner. Field audits bring a revenue agent to your business. The stakes and the scope are bigger, and so is the value of professional distance.
The three rules of surviving an audit
1. Answer only what's asked
An audit of your 2024 mileage log is not an invitation to discuss 2022. Volunteering extra years and extra issues is how small audits become big ones. A representative keeps the scope fenced.
2. Substantiate, don't narrate
Examiners work from documents: receipts, logs, bank records, contracts. A good story with no paper loses to a thin file with complete paper every time.
3. Know the clock
The IRS generally has three years from filing to assess more tax (26 U.S.C. § 6501) — six if income was understated by over 25%, unlimited for fraud or unfiled years. Near the end of that window, the agency may ask you to sign an extension (Form 872). Whether to sign is a strategic decision, not a courtesy — get advice before you pick up the pen.
Respond to the notice — or amend?
The most common procedural paralysis: a notice arrives flagging one missing form, and the taxpayer wonders whether to just send the form or file a whole amended return. Usually the targeted response is right — an amendment reopens the return more broadly and restarts conversations you don't want. But when the original return has deeper problems, amending first can be the cleaner move. This is a judgment call a licensed professional makes after reading the actual notice, which is why the first step is always the same: connect with local Muncie tax resolution specialists before you answer it.
Indiana watches too
A federal audit frequently draws Indiana DOR attention to the same years — the agencies share information, and the state runs its own examinations with its own deadlines, backed by the warrant pipeline. Whatever strategy resolves the federal side has to account for the state side from the start. Indiana tax help covers the state half; licensed representation covers all of it.
Common questions
What are the three types of IRS audits?
Correspondence audits happen entirely by mail (the most common). Office audits require an in-person visit to a TAC. Field audits send a revenue agent to your home or business — reserved for complex or high-dollar cases. Each demands a different response strategy.
Is a CP2000 notice an audit?
Technically no — it is a proposed-changes notice generated when IRS computers find a mismatch between your return and information returns (W-2s, 1099s). But you must respond within 30 days (a 60-day extension is available), and ignoring it turns the proposal into an assessment.
How far back can the IRS audit?
Generally three years from the filing date under 26 U.S.C. § 6501. Six years if you understated income by more than 25%. No limit for fraudulent returns or years you never filed — another reason unfiled returns are urgent.
Should I respond to the notice myself or amend the return?
It depends on what the notice says. A CP2000 or correspondence audit usually wants a targeted response with documentation — not a full amended return, which can open new issues. A licensed professional reads the notice first and chooses the narrower path.
Can Indiana audit me too?
Yes. The Indiana Department of Revenue runs its own audit programs, and a federal audit often triggers state interest in the same years. Handle both — the state will not wait for the federal case to finish.
Don't answer the audit letter alone.
A vetted, licensed professional reads the notice, sets the strategy, and handles the IRS for you — starting with a free, confidential call.
Calls only. No fee to talk. No Social Security numbers or bank details collected on this website.