IRS Audit Letter – What to Do

What This Letter Means

An IRS audit letter means the IRS has selected your tax return for examination. The letter will identify specific items the IRS wants to review and request supporting documentation. Most audit letters are routine correspondence audits, not criminal investigations.

The letter includes a notice number, the tax year under examination, the items being questioned, a response deadline, and contact information for the assigned examiner or department.

Why You Received This Letter

Audit letters are issued for specific reasons:

• Computer screening detected items outside statistical norms
• Third-party information does not match your return
• Deductions or credits require verification
• Random selection for compliance research

Receiving an audit letter does not mean you are accused of fraud. It means the IRS needs clarification or documentation.

What NOT to Do

• Do not ignore the letter and hope it goes away
• Do not panic or assume the worst
• Do not respond immediately without reviewing your records
• Do not call the IRS without understanding what they are asking for
• Do not agree to items without verifying the facts
• Do not miss the response deadline printed on the letter

What to Do Next

Read the letter carefully to identify what the IRS is requesting. Note the response deadline and the specific items under examination. Locate your tax return for the year in question and gather supporting documents such as receipts, bank statements, or forms referenced in the letter.

Prepare a clear written response that addresses each item requested. Include copies of supporting documents and mail your response to the address on the letter before the deadline.

Related Resources