The IRS uses Letter 4108 as a cover letter for Forms 4666, 4667, and/or Form 4668. These report audit findings to you. The audit usually involves Forms 941, 944 or 940. The penalties & implications of the audit can be serious.
Respond to Letter 4108
By itself, Letter 4108 is not very important other than to give you instructions on what to do if you agree or disagree with the audit reports.
From the letter you can get the name, address, phone & fax number for the agent assigned to your case. Do not be surprised if the IRS office is located in another state. These types of audits are often handled by mail.
Because an IRS audit is a legal process of investigating your business, it is critical to get legal advice before you act. Initially, we'll need to call the agent or the IRS general number (1-800-829-1040) & get the documents which the IRS says leads them to propose these changes to the business return.
Then, we'll compare the reports with your records to create an Action Plan specific for you. Then, you can confront this problem & fight the IRS through the process.
