Document requests from examiners when audits are initiated will often seem rather intimidating.  When representing substantial clients, we often attempt to actually give them everything they ask for in a neatly cross-referenced  book.  Knock on wood, that has resulted in quite a few no-changes in the last several years.  Exams is the paper tiger of the IRS.  They can drive a taxpayer who wants to be compliant insane, but they can’t really do anything to you other than ultimately send you a bill in the form of a statutory notice of deficiency. You have ninety days to appeal that determination in Tax Court.  » Read more..