What Does an Audit Letter From the IRS Look Like?
Decode IRS audit letters: learn to verify authenticity, understand their content, and navigate your immediate next steps with confidence.
Receiving a letter from the Internal Revenue Service (IRS) can cause apprehension. An audit letter indicates the IRS has selected your tax return for a formal review. Understanding its contents helps taxpayers respond appropriately and address agency concerns. The IRS conducts these examinations to verify reported income, deductions, and credits, ensuring tax law compliance.
Identifying an Authentic IRS Audit Letter
Distinguishing a legitimate IRS audit letter from fraudulent attempts is important. An authentic IRS audit letter always arrives via official mail, often through certified mail, to the address on file with the agency. The envelope features the IRS logo and “Official Business Penalty for Private Use” on the return address. The letter itself is printed on official IRS letterhead, includes your name, address, taxpayer identification number, and specifies the tax year under review.
The IRS will generally not initiate audit contact by phone, email, or social media. Genuine IRS communications never demand immediate payment through unconventional methods like gift cards, wire transfers, or cryptocurrency. Scam letters often contain grammatical errors, misspellings, or threats of arrest or legal action, which are not characteristic of official IRS correspondence. To verify authenticity, look for a notice number, often found in the upper or lower right-hand corner, starting with “CP” or “LTR” followed by numbers. This number indicates the type of notice and can be cross-referenced on the official IRS website.
Key Information Within the Audit Letter
An IRS audit letter outlines the reason for contact and guides your next steps. It includes a notice number, such as CP2000 or LTR3219, and clearly states the specific tax year or years being examined. It also explains the reason for the audit, which might involve discrepancies between your reported information and data the IRS received from third parties, such as employers or financial institutions.
The letter specifies the type of audit being conducted. The most common is a correspondence audit, handled entirely by mail for simpler issues like verifying deductions or income. For more complex matters, the letter might indicate an office audit, requiring an in-person meeting at an IRS office, or a field audit, where an IRS agent visits your home or business for a more extensive review. The letter lists specific documents and information requested to support your tax return entries, such as receipts, bank statements, canceled checks, or other financial records.
A response deadline will be clearly stated, typically providing a period of around 30 days. The letter also includes contact information for the IRS agent or department handling your case, allowing you to seek clarification. Audit letters often reference Publication 1, “Your Rights as a Taxpayer,” which outlines your fundamental rights throughout the audit process.
Your Initial Steps After Receiving the Letter
Upon receiving an IRS audit letter, your initial response should involve careful review and organized action. Read the entire letter thoroughly to grasp the specific issues the IRS is questioning and the exact information being requested. Pay close attention to the stated deadline for your response to avoid further complications or penalties.
Begin gathering all documents and records specified in the letter to substantiate the income, deductions, or credits the IRS is examining. Organize these records systematically, making copies of everything you plan to send to the IRS while retaining the originals for your own files. If the letter’s contents are unclear or the requested documentation extensive, consider professional assistance from a tax professional, such as a Certified Public Accountant (CPA) or an enrolled agent.
If you require more time to gather documents or prepare your response, you may request an extension from the IRS. Communicate with the IRS if you anticipate any delays in meeting the deadline. When ready to respond, follow the instructions in the letter for submission, which is typically by mail. Maintain a detailed log of all communications, including dates, times, and names of IRS personnel, along with copies of all sent correspondence, to ensure a clear record of your compliance.