What You Should Never Say When You're Dealing With The IRS

Getting a letter from the Internal Revenue Service (IRS) can unleash a torrent of emotions. After the passing of this year's tax filing deadline, many Americans will be eagerly awaiting their tax refund. Most will be seeking to leverage these dollars — averaging $2,290 so far in 2026 — for added savings, debt reduction, or in support of a big family purchase. Plenty will see their refund deposited without issue or delay, but for a select few, filing mistakes or even a random audit selection can slow this otherwise automatic process and cause plenty of headache. If you have to call into the IRS after receiving a letter, there are some additional pitfalls to keep in mind. It's also important to note that, according to the IRS website, you will never be called directly with "urgent or threatening messages," offering a key impersonation scam warning for those who do receive such calls.

However, when you do come into more direct contact with the revenue service, you'll almost certainly be asked to provide extra details about your finances. It's obviously a bad idea to lie to IRS agents, in part because they have numerous avenues available to verify the details you provide. Lying creates an even more tangled web of questions and problems, one that can lead to criminal charges. But there's another important rule of thumb to follow in your conversations: Never share too much when speaking with an IRS agent. Only answer the questions they ask, and your ordeal is likely to end that much faster.

The IRS audits around half a million taxpayers each year. For 2024, IRS reported just over 505,000 tax return audits. While some audits are initiated by random selection, there are many red flags that can raise your audit risk when you're filing your tax return. There are also a range of less invasive actions the IRS can take, including sending a correction notice to fix simple math errors. 

If the IRS contacts you about an error in your filing, or with additional questions to verify something like a claimed deduction, you should never veer off topic. Only answering the questions that are presented to you in as narrow a focus as possible keeps the conversation on track. This allows the IRS agent you're dealing with to get the answers they need quickly and move on. 

On the other hand, if you engage in a wider conversation surrounding your finances, you are more likely to open additional doors of investigation, potentially turning a simple verification into a prolonged and painful audit. A single unsolicited comment or admission could spark the agency's interest in other aspects of your financial life, prolonging the conversation and resulting in more stress. Tax law is complex and dense, so it's best not to complicate the process further with information you were never asked to share.