How to Prepare for a Revenue Audit in Ireland: Best Practices

If you’ve ever received a letter from Revenue notifying you of an audit, your first reaction might be panic. Words like “audit” can feel intimidating - but with the right preparation and professional support, a Revenue audit doesn’t have to be stressful.

At Bond & Co Chartered Accountants, we work with individuals, landlords, and businesses across Ireland to take the stress out of audits. This guide explains what a Revenue audit is, why you might be selected, and the best practices to prepare - plus why having our team on your side makes all the difference.

What is a Revenue Audit?

A Revenue audit is a check carried out by the Irish Revenue Commissioners to ensure your tax returns are accurate and complete.

It often focuses on:

Income Tax, VAT, PAYE/PRSI/USC, or Corporation Tax
A specific year or accounting period
Certain transactions Revenue wants to review

The purpose is to verify compliance and recover unpaid tax, interest, or penalties if errors are found.

With Bond & Co by your side, you don’t have to face Revenue alone. We represent you, prepare your documents, and handle communications from start to finish. Book a consultation here.

Why Might You Be Selected for a Revenue Audit?

You can be selected in two ways:

Random selection - Revenue audits a sample of taxpayers every year.
Risk-based selection - triggered by:
- Late or inconsistent filings.
- Large or unusual transactions.
- Data from banks or third parties.
- Gaps between your returns and other Revenue records.

Even if you think everything is correct, having an accountant review your records before Revenue does can save you costly penalties.

What Happens During a Revenue Audit?

The typical process includes:

Notification Letter
- You’ll get a letter (usually 21 days in advance) outlining which taxes/years are being reviewed.
Audit Meeting
- Revenue examines your records at your business premises or at their offices.
- You’ll need to provide accounts, receipts, VAT records, bank statements, payroll data, and more.
Queries & Review
- Revenue may ask for clarification or request extra documentation.
Outcome
- No issues = audit closes.
- Errors found = Revenue seeks additional tax, interest, and possibly penalties.

When you work with us, we attend the audit with you or on your behalf, ensuring Revenue gets what they need and you’re fully protected.

Best Practices to Prepare for a Revenue Audit

The best way to handle an audit is to be ready before the letter arrives.

1. Keep Accurate Records

Organise invoices, receipts, payroll, and VAT returns.
Keep them for at least six years (Revenue requirement).

2. File and Pay On Time

On-time filing shows compliance and reduces audit risk.
See our Irish Tax Deadlines Guide for key dates.

3. Review Before Submitting

Double-check figures against source documents.
Many errors happen in VAT or payroll returns.
Our accounting services include thorough checks before submission.

4. Do a Pre-Audit Health Check

A “mock audit” can uncover risks early.
Bond & Co offers pre-audit reviews so you can fix issues before Revenue finds them.

5. Be Honest & Transparent

If you’ve spotted errors, disclose them voluntarily. Revenue reduces penalties for voluntary disclosures.

6. Get Professional Representation

An accountant ensures you avoid mistakes, penalties, and unnecessary stress.
Our clients trust us to handle the entire audit process, so they don’t have to.

Common Issues Revenue Finds

From our experience, the most frequent audit problems include:

VAT errors (incorrect claims, mixed-use expenses).
Unreported income (especially cash).
Payroll mistakes (misclassifying employees).
No receipts for expenses claimed.
Undeclared rental income.

Don’t wait until Revenue finds these issues - let Bond & Co review your accounts now. Talk to us today.

How Bond & Co Helps with Revenue Audits

We’ve supported countless clients through audits, and our approach is simple:

Pre-audit health check - identify and fix risks.
Full representation - we speak to Revenue for you.
Document support - making sure everything is in order.
Negotiation - working to reduce penalties and interest.
Peace of mind - you don’t face Revenue alone.

If you’ve received an audit notice, don’t wait. Get in touch with Bond & Co today and let us take care of the rest.

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