Audit
How the Department of Revenue Will Notify You About Pending State Tax Audit
If your tax return is selected for audit, the Department of Revenue (LDR) will notify you through written correspondence. This communication will include detailed information regarding your audit, such as the tax years under review and any documentation you must provide. In some cases, an auditor may contact you by phone first to verify your contact details. The official audit letter will have the auditor’s contact details for any further questions.Helpful Guidance during an Audit
Steps to Take After Receiving an Audit Notification
Upon receiving a letter about a pending audit, carefully review the details provided. The letter will specify the tax years being audited, the required documentation, and where to send it. You may contact the assigned auditor directly for any additional information, and it’s recommended to communicate by email. Follow the instructions carefully to ensure your audit process goes smoothly.
Representation During a State Tax Audit
You are allowed to have a representative, such as an attorney or accountant, represent you during a state tax audit. However, you and your representative must submit Form R-7006, Power of Attorney and Declaration of Representative, before the auditor can disclose any information to them. This ensures your representative can legally handle matters related to your audit.
Updated February 28, 2025
Frequently-Asked Questions
How will the Department of Revenue notify me about a pending state tax audit?
If your tax return is under audit, you will receive written correspondence in the mail from an LDR tax auditor with detailed information concerning your audit. An auditor may call you first to verify contact information. (Question and answer last reviewed June 24, 2024)
How should I proceed after receiving a letter stating that my tax return is under audit?
If you receive a letter stating your tax return is under audit, the letter will explain in detail which years are under audit, what documentation the audit will require, and where you should send the documentation. You may contact the auditor assigned your case directly with additional questions. The letter will contain the auditor’s telephone number and email address. Email communication is preferred. (Question and answer last reviewed June 24, 2024)
Who can I contact if I have questions regarding an audit?
You should contact your assigned auditor with specific audit-related questions. (Question and answer last reviewed June 24, 2024)
Can an auditor advise me on issues under audit?
No, the department is prohibited from providing any tax advice to any taxpayer under audit. You should consult your tax preparer or other representative for advice. (Question and answer last reviewed June 24, 2024)
What documentation should I provide to an auditor?
Depending on the complexity of the audit, the auditor may itemize certain items under review. You should provide all relevant documentation relating to these specific items. If the auditor requests a certain type of documentation, such as an invoice, you should provide that invoice. Otherwise, you should provide all relevant documentation to support your income, deductions, and expenses. Documentation includes records such as canceled checks, invoices, receipts, etc. (Question and answer last reviewed June 24, 2024)
