What to do next
Understand the scope
Identify which years, entities, and issues the audit covers. Answering beyond the scope of what's asked can widen the review unnecessarily.
Organize your records
Gather the returns, ledgers, invoices, contracts, and bank records supporting the items under review. Gaps in documentation are the most common source of adverse assessments.
Consider representation before you respond
A tax lawyer or accountant can manage communications, protect privileged material, and keep responses accurate and bounded. That matters most where penalties or allegations of misconduct are possible.
Frequently asked questions
Does an audit mean I've done something wrong?
No. Audits are triggered for many reasons, including random selection and statistical screening. Many close with no change.
Do I need a lawyer, or is my accountant enough?
An accountant is often sufficient for routine reviews. A tax lawyer becomes important where there's a dispute, potential penalties, allegations of misconduct, or a need for legal privilege.
Can I refuse to provide documents?
Tax authorities have broad powers to compel records, and refusing without a proper basis usually makes things worse. There are limits, though — advice helps you comply without overreaching.
What if I disagree with the result?
Both the US and Canada have formal objection and appeal routes with strict deadlines. Missing an objection deadline can forfeit your right to dispute the assessment.
This is general information, not legal advice. Laws vary by location and every situation is different — speak with a qualified lawyer about your specific circumstances.