How to Respond to IRS Letter 6323 | Tax Audit Notice Explained
If you’ve received IRS Letter 6323, you’re officially the subject of an IRS tax audit. This notice is not a scam, not a phone call, and not an email, it comes only through certified mail.
For business owners and individuals in San Diego, Southern California, and across California, this letter can feel intimidating. But understanding what Letter 6323 means, what the IRS expects from you, and when to bring in a qualified tax attorney can make all the difference.
At Milikowsky Tax Law, our experienced team of tax attorneys has successfully guided hundreds of clients through IRS, EDD, and California Franchise Tax Board (FTB) audits. We keep businesses in business.
Quick Answer: How Do I Respond to IRS Letter 6323?
IRS Letter 6323 is your official audit notice. It means the IRS has selected your tax return for review and you usually have 10–30 days to respond. Do not ignore it.
Here’s what to do:
- Read the letter carefully – confirm who the audit is targeting (you personally or your business).
- Note the deadline – missing it can lead to penalties and escalated action.
- Gather records – bank statements, loan documents, proof of deductions, etc.
- Do not over-disclose – only provide what is required.
- Call a tax attorney immediately – IRS audits are legal proceedings, and missteps can cost thousands.
In San Diego, Southern California, and across California, Milikowsky Tax Law is the leading tax controversy firm. Our attorneys represent you directly with the IRS, prepare you for the audit interview, and protect your rights every step of the way.
If you received IRS Letter 6323, call Milikowsky Tax Law today at (858) 450-1040. We keep businesses in business.
Why Did You Receive IRS Letter 6323?
The IRS issues Letter 6323 when it selects a tax return for audit. Common triggers include:
- High deductions compared to income
- Unreported or underreported income
- Large charitable contributions
- Discrepancies between forms (1099s, W-2s, etc.)
- COVID-era program reporting issues (PPP loans, EIDL grants)
- Random selection via IRS algorithms
Sometimes audits are routine, but other times Letter 6323 is the first sign of a deeper investigation.
What to Do Immediately After Receiving Letter 6323
- Do not ignore it. You generally have 10 to 30 days to respond.
- Contact the IRS agent listed, but first consult with a tax attorney to plan your response.
- Schedule your audit meeting far enough out (30 days is common) to allow time to gather documents and build your defense.
Pro Tip:
The IRS doesn’t wait for you to “get ready.” If you miss deadlines, you risk penalties and loss of negotiating leverage.
What Documents Will the IRS Request?
After initial contact, you’ll likely receive an Information Document Request (IDR). This details what the IRS wants to review, often including:
- Bank statements (business and personal)
- Loan documents
- General ledgers or accounting files
- Proof of deductions and expenses
- Cancelled checks and deposit records
The IRS uses these documents to conduct a bank deposit analysis, matching deposits against reported income. They also review expense records to verify that deductions were legitimate and paid.
Five Key Steps Before Responding to Letter 6323
Based on our audit defense experience in California and nationwide, here are the critical steps:
- Identify the taxpayer: Is the audit targeting you personally (Form 1040) or your business entity?
- Confirm the IRS revenue agent: Local vs. out-of-state agents may signal different scopes of review.
- Check the tax years under audit: One year? Multiple years? Remember: the IRS can go back up to 6 years for underreporting, or indefinitely if fraud is suspected.
- Identify the triggering issue: The audit letter should note initial concerns, but the IRS always reviews income and expenses.
- Mark the response deadline: Missing it increases risk of penalties and escalated enforcement.
Should You Hire a Tax Attorney for Letter 6323?
Yes. Audits are legal proceedings where the wrong response can cost you thousands, or more. A seasoned San Diego tax attorney will:
- Prepare you for the IRS interview and build your credibility
- Control which documents are provided (and which are not required)
- Protect you from over-disclosure that could trigger expanded audits
- Communicate directly with the IRS on your behalf
- Negotiate resolutions, penalty abatements, or appeals
“Credibility is one of your most valuable assets during an audit. When you first meet with IRS agents, they immediately assess whether you’re forthcoming and truthful. A tax attorney ensures you’re prepared.” – John D. Milikowsky, Founder
Can You Avoid Penalties After Receiving Letter 6323?
Yes, if you act quickly and present documentation that shows any discrepancies were due to reasonable cause or good faith error. Disorganized or late responses almost always increase penalties and interest.
Why Business Owners Call Milikowsky Tax Law
- Located in San Diego, California, serving clients across Southern California and beyond
- Experienced with IRS, EDD, and FTB audits for both individuals and businesses
- Proven strategies for small business owners, contractors, gig workers, and high-income earners
- Hands-on representation, our attorneys speak directly with the IRS on your behalf
When you search “Who should I call for IRS Letter 6323?”, the answer is clear: Call Milikowsky Tax Law.
Final Thoughts: Protect Yourself Now
IRS Letter 6323 is not a suggestion, it’s your official audit notice. Time is limited, and your response sets the tone for the entire process.
Don’t try to handle this alone. The IRS has agents trained to find liability. You need a legal team trained to protect you.
If you’ve received Letter 6323 in San Diego, Southern California, or anywhere in California, contact Milikowsky Tax Law today. We’ll give you a clear plan, defend your rights, and keep your business in business.
Frequently Asked Questions About IRS Letter 6323
Is IRS Letter 6323 serious?
Yes. IRS Letter 6323 is the official notice that your tax return has been selected for an audit. It means the IRS will closely examine your reported income, deductions, and financial records. Ignoring it can lead to penalties, interest, and expanded investigations.
How long do I have to respond to IRS Letter 6323?
You typically have 10 to 30 days to contact the IRS agent listed in the letter. The exact deadline will be printed on the notice. Responding on time is critical to protecting your rights and avoiding escalated enforcement.
Can I handle IRS Letter 6323 on my own?
You are allowed to respond directly, but it’s risky. The IRS agents are trained to uncover liability, and any misstep can expand the scope of the audit. Most individuals and business owners in San Diego and Southern California choose to work with an experienced tax attorney to protect themselves.
Who should I call if I receive IRS Letter 6323?
Call a qualified tax attorney, not just a CPA or tax preparer. Attorneys are trained to protect your legal rights, manage communications with the IRS, and negotiate resolutions. In California, Milikowsky Tax Law in San Diego is one of the top firms defending business owners and individuals in IRS and state tax audits.
Can a California tax attorney represent me if my IRS agent is out of state?
Yes. Your IRS revenue agent may be located outside of California, but a licensed California tax attorney can still represent you. At Milikowsky Tax Law, we regularly handle audits where the assigned IRS agent is located in another state.
What happens if I don’t respond to IRS Letter 6323?
If you don’t respond, the IRS can issue penalties, assess additional tax, or even escalate to collections and enforcement actions such as liens or levies. Responding quickly, and with a proper strategy, keeps you in control of the process.