🧾 IRS Audit Help for Freelancers: What To Do (and Avoid)

Getting a letter from the IRS is every freelancer’s nightmare. But don’t panic. Here’s exactly how to respond, what to include, and how to stay audit-proof going forward.

🚨 Why You Might Get Audited

Freelancers often get flagged for:

• High deductions compared to income
• No mileage log or proof of expenses
• Reporting income inconsistently from 1099s
• Using round numbers or vague categories

💡 IRS computers use algorithms. Even honest returns can get flagged. Your job is to be calm, organized, and professional.

📦 What To Include in Your Response

✅ A categorized income & expense summary

✅ Screenshots or scans of receipts, invoices, and statements

✅ A signed cover letter — simple and factual

✅ A printout of the IRS letter you received

Don’t include:

🚫 Your entire bank account history

🚫 Long explanations or emotional defenses

🚫 Messy spreadsheets or handwritten notes

✍️ Sample Cover Letter (Copy This)

Dear IRS Officer,

Attached is the documentation requested in response to Notice CP2000 regarding tax year 2023. I’ve included a categorized summary of my business income and expenses, as well as supporting documentation.

Please let me know if further information is needed.

Sincerely, [Your Name]

🧠 Use Tools That Speak IRS

We created a freelancer-friendly pack to help you handle audits with clarity and confidence. It includes:

• ✅ A ready-to-fill IRS Audit Income & Expense Summary Template
• ✅ A clean, professional IRS Cover Letter Template
• ✅ A resolved audit email response that you can tweak and reuse
• ✅ A printable Audit Notes Tracker so you stay organized under pressure

👉 Get the IRS Audit Survival Folder (Free)

📊 Stay Audit-Proof All Year

Here’s how freelancers keep clean books that survive audits:

• Use a separate bank account for freelance income
• Save every receipt to Google Drive or Dropbox
• Use our Smart Expense Tracker Spreadsheet to auto-categorize spending
• Record mileage weekly using Google Maps history
• Keep 1099s matched to deposits in a clean spreadsheet

👉 Want to automate this? The full Gig Seller TaxFix Pack includes:

• A done-for-you 1099 Planner
• A smart expense tracker
• Audit-proof templates
• Checklists for Etsy, Uber, eBay, and freelancers

🎯 Download the Full Audit-Ready TaxFix Pack →

📬 Questions? DM @TaxTock on TikTok or reply to your download email — we respond within 24 hours.