Receiving an IRS audit notice can be stressful, and many people feel tempted to set it aside and hope the issue goes away. Unfortunately, ignoring an audit notice often makes the situation worse.

If you do not respond by the deadline, the IRS may proceed without your input. This can result in the IRS disallowing deductions, credits, or positions you claimed simply because no supporting documentation was provided. In those cases, the IRS typically issues an assessment based on its own calculations, which may significantly increase the amount owed.

Once an assessment is made, penalties and interest can continue to accrue. The IRS may also begin collection activity, including liens or levies, depending on the size of the balance and the length of time it remains unresolved. For business owners, an unresolved audit can affect payroll compliance, banking relationships, and future filings.

In some situations, failing to engage during the audit process can limit your appeal rights later. While appeals may still be available, your options can become narrower if deadlines are missed early on.

If you have received an IRS audit notice and are unsure how to respond, speaking with a tax attorney early can help you understand your rights, your obligations, and the potential consequences of inaction. Call our Atlanta office right now to discuss your situation.