What Does an IRS Audit Letter Look Like?

Receiving an IRS audit letter can be unsettling. These letters initiate an examination of your tax return to verify the accuracy of reported income, deductions, credits, and other financial information. Audits are a routine part of tax administration, designed to ensure tax compliance. Understanding the typical characteristics of an IRS audit letter and knowing how to respond can help manage the process effectively.

Essential Components of an Audit Letter

An official IRS audit letter distinguishes itself through specific physical and informational elements. These letters are consistently sent via postal mail, often certified, and never initiated through phone calls, emails, or social media. The correspondence features official IRS letterhead for authenticity.

The letter will contain key identifiers for understanding its purpose. Look for an IRS notice number, typically found in the upper right or lower right corner of the first page, which often begins with “CP” (e.g., CP2000) or “LTR” (e.g., LTR2205-A). This number helps categorize the type of communication and can be referenced for further information. The letter will clearly state the specific tax year or years under examination, along with the contact information for the IRS department or agent handling your case.

The content of the audit letter provides detailed information regarding the examination. It will specify the reason for the audit, indicating that a particular tax return, such as your Form 1040, has been selected for review. The letter will list the specific items or issues on your tax return that are being questioned, such as certain deductions, reported income discrepancies, or claimed credits. For instance, it might request supporting documentation for itemized deductions, business expenses, or income reported on specific forms like W-2s or 1099s.

The letter requests specific documents or information needed to support your tax return claims. This might include receipts, bank statements, canceled checks, or other financial records. The letter will also stipulate a clear deadline for your response, typically around 30 days from the date printed on the letter, and may outline the consequences of failing to respond. It provides official IRS contact information and may reference Publication 1, “Your Rights as a Taxpayer,” detailing taxpayer rights.

Confirming the Letter’s Legitimacy

Due to scams, confirm any audit letter is genuinely from the IRS. Fraudulent communications often involve threats of immediate arrest or demands for unusual payment methods, such as gift cards or wire transfers.

To verify the legitimacy of a suspicious letter, do not use any contact information provided in the letter itself. Instead, visit the official IRS website, IRS.gov. Search for the notice number (e.g., CP2000, LTR2205-A) on IRS.gov for explanations.

Another method is to call the IRS directly using their official toll-free number for individual tax inquiries, which is 1-800-829-1040. For business tax inquiries, the number is 1-800-829-4933. Provide the agent’s name, phone number, or IRS ID number from the letter to confirm the audit. Reviewing IRS Publication 1, “Your Rights as a Taxpayer,” available on IRS.gov, can also help you understand legitimate IRS procedures and your entitlements during an audit.

Initial Actions Upon Receiving an Audit Letter

Once you have confirmed the authenticity of an IRS audit letter, begin by carefully reviewing the entire letter. Pay close attention to the specific tax year being examined and the precise issues identified for review. This ensures a clear understanding of what information the IRS seeks.

Note the response deadline in the letter; timely action avoids complications or penalties. Most IRS audit letters provide approximately 30 days for a response from the date the letter was issued. If you anticipate needing more time, you may be able to request a one-time 30-day extension, often by faxing your request to the number provided in the letter.

Next, systematically gather all requested documents and information. This may include income statements, bank records, receipts for deductions, and any other evidence that supports the figures reported on your tax return. Organizing these documents clearly, perhaps by category or date, will facilitate the review process for both you and the IRS.

For complex issues or extensive document requests, consider professional assistance from a qualified tax professional (e.g., CPA, Enrolled Agent, tax attorney). These professionals can interpret the letter, prepare your response, and represent you during the audit.

Finally, prepare a clear, organized response directly addressing each point in the audit letter. This response should systematically provide the requested information and documentation. Ignoring a legitimate audit letter can lead to serious consequences, including the IRS making tax adjustments based on available information, imposing additional taxes, penalties, and interest, and potentially initiating collection actions like wage garnishments or bank levies.