I received my federal refund however changes were proposed with my state refund. They are requesting receipts for my business loss is this legal if I am not being audited

[WillK · Accepted solution]

If they sent you a letter proposing changes to your return unless you provide documentation for business expenses, it is called a desk audit. This is legal, and they can request copies of your receipts for all the business expenses you have listed on your return. You need to gather all your receipts together and provide them to the state as soon as you can.