Do IRS Audit Notices Come by Certified Mail?
Understand IRS audit notice delivery methods and how to responsibly manage official tax correspondence.
The Internal Revenue Service (IRS) conducts audits to review an individual’s or organization’s tax returns, ensuring compliance with federal tax laws. These examinations verify the accuracy of reported income, deductions, and credits. The IRS communicates with taxpayers through various channels, primarily through mailed notices.
How the IRS Initiates Audits
The IRS initiates an audit by sending a notice through regular First-Class Mail. Common initial audit notices, such as the CP2000 or Letter 2000, are delivered this way. A CP2000 notice is sent when discrepancies exist between income reported on a tax return and information received from third parties like employers or financial institutions. These notices are computer-generated and propose adjustments to a taxpayer’s liability.
While initial audit notifications generally arrive via standard mail, the IRS does use certified mail for more sensitive or time-critical communications. This method provides proof of delivery, which is essential for certain legal notices. Certified mail is commonly reserved for matters such as final notices of intent to levy, notices of deficiency, or in later stages of an audit where documented receipt is crucial. Even though initial audit notices might not be certified, any official IRS correspondence warrants prompt attention.
Understanding IRS Communications
Regardless of the delivery method, understand the content of any IRS notice. These communications, whether an examination notice or a CP2000, specify the tax year under review and the particular issues being examined. The notice outlines the required response, including a deadline for documentation or clarification. Each official IRS notice includes a control number and contact information, which can be used to verify its legitimacy.
A CP2000 notice will detail the proposed changes to income, taxes, credits, or payments based on the IRS’s comparison of reported information with third-party data. Carefully read the entire notice, as it provides instructions and identifies the specific forms or amounts in question. Understanding these details helps prepare an accurate and timely response.
Responding to IRS Audit Notices
Upon receiving an audit notice, do not ignore it, as this can lead to penalties and increased tax liabilities. The notice specifies a timeframe for response, typically 30 days. Taxpayers should gather all requested documentation, such as W-2s, 1099s, receipts, and bank statements, to support their tax return claims.
Taxpayers have options for responding to a notice, including agreeing with the IRS’s findings, disagreeing and providing supporting documentation, or requesting additional time. If issues are complex, seeking professional advice from a tax attorney or accountant is beneficial. After a response is submitted, the IRS may issue further correspondence, request an in-person meeting for office or field audits, or close the audit.