If I’ve sounded like a broken record recently… I apologize. But for good reason…. the IRS are truly contributing to the increase of postage sales for the USPS as Correspondence Audits are flying out of every Service Center across the nation.
Last week, I wrote about the uptick in field-audits from the Internal Revenue Service. This is a natural follow-on. If you missed that article, you can find it HERE.
Correspondence Audits (the “love letters” in the mail) are on the rise as the IRS leans into technology and software triggers to recapture lost tax revenue. That means when you receive that notice, you’re in a much different terrain than you were just a few years ago.
Today, I want to walk you through why walking into an audit on your own is one of the worst decisions a business owner can make — and how to turn the situation into risk-management instead of panic mode.
The “Love Letter” Just Arrived — What Do You Do?
When you get that IRS notice, your first instinct might be “I can handle this myself,” because you’ve built the business, you’ve filed the returns, and you feel smart enough.
But here’s what’s changed: the IRS is increasingly relying on software correspondence triggers, automated matching with third-party data, and data analytics. These tools aren’t necessarily smarter than you, but they force faster responses and put even the smallest mismatches under the microscope.
If you respond without a plan, you may inadvertently answer a question that opens up follow-up inquiries, or worse, you give a statement that later becomes difficult or impossible to retract. That’s why the first thing I tell any business owner who receives an audit notice is: pause.
Don’t call back immediately. Don’t send your files off without consulting someone trained in this arena. Your livelihood and business reputation are at stake.
Why You Should Never Represent Yourself in an Audit
I’ve been doing this long enough to see what happens when business owners try to go it alone. You’re facing an IRS agent (or their delegate) who may seem friendly, but every question you answer voluntarily becomes part of the permanent record.
Once you say something on the record, it’s much harder to take it back.
When you’re unrepresented: you’re required to answer questions. If you don’t answer, it looks evasive. If you guess or mis-state (even innocently) it may open the door to broader scrutiny. If you are represented by a properly credentialed professional (such as an EA, an attorney, or CPA) it changes the dynamic.
Your representative says: “I’m going to confer with my client and respond in writing.”
That simple step gives you time, protects you, and stops the question in its tracks for now.
This gap in representation is precisely why self-representation is such a bad idea: you have no barrier, no buffer, and no protection. One misplaced answer, one “uh, I guess” moment, and you could be in a much tougher spot than you started.
You’ve probably heard attorneys tell their clients, “Say nothing until your lawyer is present.”
The same principle applies during an IRS audit. Your only response should be: “I’ll be reviewing this with my tax representative, and they will follow up.”
Then stop talking. No explanations, no guesses, no small talk. Repeat the same line every time, and let your professional handle the rest.
Lying on Your Return: The Single Worst Mistake
Let me be blunt: lying on your tax return is the worst move you can make. It’s not just a deduction you claim incorrectly. It’s putting your credibility, your business, and in worst cases, your freedom at risk. When you willfully mis-report income or inflate deductions, you give the IRS leverage: penalty, interest, even criminal referral.
I once worked with a business owner who under-reported a modest amount of income. Thought it would fly under the radar. It didn’t. The agent found the source documents, asked for clarification, the owner tried to “explain” it and the responses became inconsistent. Suddenly the case shifted from “audit” to “investigation.”
A simple mis-statement turned into a six-figure liability and a drawn-out ordeal.
The safest way to survive an audit comes down to two things: telling the truth and having proper representation. Even if you made an honest mistake, a qualified tax professional can present the facts the right way. Organized, documented, and supported.
When the IRS is dealing with another professional instead of a stressed-out taxpayer, the tone changes. Agents tend to stay inside the limits of their own procedures, and the conversation becomes peer-to-peer instead of “you versus the government.” That alone can mean the difference between a minor adjustment and a full-blown problem.
The main takeaway here is simple: by hiring your own representation, you preserve credibility and significantly reduce downside.
The Art of Controlled Responses — How a Pro Protects You
Here’s where expertise counts. When you bring in a tax pro to represent you, the strategy isn’t about hiding things. It’s about controlling the narrative and limiting exposure.
Your representative will know how to pause, request documentation, respond in writing, and avoid verbal commitments that can’t be undone. Here’s a simple script you can expect:
Agent: “Please explain why you claimed X deduction.”
Rep: “Thank you, Agent. I’ll need to review with my client and provide a written response by [insert date].”
That one response does wonders. It stops the immediate pressure, buys you time, and transfers the burden to your rep, who knows how to draft the response in a way that limits follow-up.
Without representation you risk saying something that triggers deeper requests. With representation you get a buffer and a plan.
In my years at Weston Tax Associates, I’ve seen how uninterrupted representation reduces the number of follow-up letters, shrinks the adjustment amounts, and often shortens the time to resolution. That kind of outcome is exactly what business owners want when they’re busy focusing on growth — not fighting the IRS.
Treat an Audit Like a Business-Risk Event
Your business is your livelihood. An IRS audit doesn’t just affect your tax bill — it can interrupt operations, consume leadership attention, damage reputation, and affect your banking relationships. So it’s best to treat an audit as a business-risk event and plan accordingly.
Here’s how you can think about it: you wouldn’t ignore a data breach, supply-chain disruption or regulatory investigation. And an audit deserves the same structured response.
The checklist I use with clients is:
1. Stop communicating directly with the IRS until representation is in place.
2. Engage your tax professional (me!) to manage the response and strategy.
3. Gather requested records in an organized way so your rep can craft the best answer.
When you treat it this way, you shift from reactive fear to proactive management. You protect your business, your reputation, your time… and you give yourself the best chance to resolve the matter with the least disruption.
What’s Changed in the IRS Landscape — Why the Timing Matters
You may ask: if audit rates are historically low, why worry now?
Fair question… while the overall individual audit rate is still under 1% for many taxpayers, the IRS’s focus is shifting thanks to enhanced software/scanning capabilities and enforcement mandates tied to the Inflation Reduction Act. This is something I’ve written about BEFORE.
In 2024 alone the IRS closed over 500,000 audits which resulted in approximately $29 billion in additional tax assessed. That means more letters, more correspondence triggers, more field audits for those with complex business returns… or who aren’t prepared.
If you’re a business owner pulling in six figures, although your probability might still be low, the consequences are high and the rules have never been more unforgiving. This is not a “take it easy, you’ll probably be fine” situation.
It’s time to assume a notice could come and have your plan ready.
My Story and Why Representation Is My Mandatory Starting Point
When I started consulting with business owners years ago, I noticed a pattern: clients who tried to answer IRS letters themselves often regret it.
The questions escalate, the timelines become unmanageable, and ultimately what could have been a tidy resolution becomes a drawn-out drainage of time and money. I decided then that my mission would be to equip business owners with not only the best tax-saving strategies, but also the smartest risk mitigation framework when the IRS comes knocking.
In my work with Weston Tax Associates I insist that for any audit notice, we are retained at the outset. The client’s role becomes strategic: provide us with the facts, let us craft the response, and focus on running the business.
The result? Fewer interruptions to your business, more control over the process, and far fewer unpleasant surprises — and yes, it’s almost always cheaper in the long run. A seasoned tax professional can often reduce your final IRS bill by far more than their fee. And even in cases where you still owe money, the return on investment is dramatically higher than if you try to handle it yourself and make a costly mistake.
That level of stewardship is part of what separates the amateurs from the experts — and I bring that to you, personally.
Pulling It All Together
Facing an IRS audit (or correspondence notice) isn’t a sign you did something wrong. But trying to defend yourself without help is a decision that stacks the odds against you.
You’re giving the IRS a clear path to proceed, while you’re operating without strategic cover. By engaging representation, you give yourself the best chance at preserving your business, minimizing disruption, and staying focused on growth.
Remember: don’t walk in alone. Pause. Call a pro. Take control of the narrative.
You built your business. You have unique priorities. When the IRS steps into your world, you need an advocate. My expertise in navigating these waters means you don’t have to figure it out alone.
Let’s keep you focused on continuing building your business and leave the audit defense to me.
Welcome to the New Age of Accounting. Let’s begin.
P.S. If you found this article helpful, you’ll love my new book S-Corp Mastery: How Smart Business Owners Maximize Tax Savings & Build a Lasting Legacy. It’s now live and available in a sleek, easy-to-read PDF version. Grab your copy here.
Chris is the Managing Partner at Weston Tax Associates, a best-selling author, and a renowned tax strategist. With over 20 years of expertise in tax and corporate finance, he simplifies complex tax concepts into actionable strategies that drive business growth. Originally from Sweden, he now lives in Florida with his wife and two sons.
