First the audit support could not help you with this audit situation ... the IRS wants a list and reciepts for the expenses in question ... READ the notice they sent you several times carefully so you know exactly what they want. If all they want is supporting docs for expenses then send COPIES ONLY of any reciepts or records as requested.
Seek local help if needed so you can understand what you need to do ( there is no such thing as a form Sch C-7).
IRS Notices - Audit Form 886A
The IRS uses Form 886A to requests information or to explain items they propose to adjust in an audit. They often request more information than what they really need but you also have a duty to supply sufficient evidence to win your case.
Income Issues: The IRS has reviewed and has noticed a discrepancy in the items reported.
Deduction Issues: The IRS is requesting substantiation for a deduction that most likely seemed incorrect or excessive.
If you don’t respond in the correct way with the proper evidence, you will be rejected, likely with an accuracy related penalty.
What is my first step?
If you received a letter or notice, a decision has to be made. Do you feel confident to handle this situation on your own? If it is a simple issue and you already know the answer, call or write them. If the issue is more complicated, you need to hire someone. The IRS or State will take full advantage of your lack of knowledge and experience.
What is Your Next Step?
The next step is to determine if the notice was sent in error. Do you have an outstanding tax liability? Do you have unfiled or incomplete returns?
Is There a Time Limit?
Yes, each letter or notice from the IRS or State will indicate a date that you MUST to contact them by. If you need more time, call the number on the notice or letter and request an extension. DO NOT ALLOW the time to expire without contacting them or hiring a representative to contact them for you.
What You Don’t Want to Do!
What you don’t want to do is nothing. Your tax problems will only get worse if you ignore them.
