Why a professional packet matters

A professional audit response packet reduces back-and-forth with the IRS, lowers the chance of additional information requests, and helps an examiner reach an accurate conclusion faster. In my 15+ years working with clients on audits, the single biggest win is clarity: a short cover letter plus clearly labeled supporting documents.

Quick, prioritized checklist

  • Read the IRS notice carefully and respond by the date printed on the letter.
  • Put your name, taxpayer identification number (SSN or EIN), tax year(s) and the IRS notice number on every page.
  • Include a one‑page cover letter summarizing what you are sending and why.
  • Provide the original item on the notice first (e.g., Schedule C income), then supporting documents in logical groups.
  • Make two copies: one to mail/submit and one for your records.

Step-by-step assembly

  1. Open with a cover letter
  • Keep it one page. State the notice number, the tax year(s), a short summary of your position, and a list of attached documents. Sign and date the letter. This letter sets context for the examiner and reduces misinterpretation.
  1. Add a one‑page summary that maps the IRS request to your attachments
  • Use a simple table or numbered list: “Item 1: Schedule C sales — see Attachments A1–A4 (invoices, bank deposits).”
  1. Organize attachments by topic and date
  • Common sections: tax return copy, income documentation, expense receipts, bank statements, third‑party docs (1099s, invoices), and correspondence with the IRS.
  • Use tabs or bold dividers and put a divider page at the front of each section with a short index.
  1. Label every page and attach a brief explanation where needed
  • Add a header or footer with taxpayer name, SSN/EIN (masked on public copies), page number, and section ID.
  • For complex items (e.g., nexus, home office, mileage) include a short memo that explains your method and cites calculation steps.
  1. Include originals only if requested
  • The IRS rarely needs original receipts; provide legible copies unless the notice explicitly asks for originals. Offer to produce originals at the examiner’s request.
  1. Use transcripts and third‑party records when helpful
  • An IRS account transcript or wage transcript can quickly corroborate reported income. (See IRS resources on transcripts.)

Formatting and presentation tips

  • Keep files single‑sided and use standard, legible fonts if electronic.
  • If mailing, use a 3‑ring binder or a well‑organized folder with printed section dividers. For an office audit or meeting, see our guide on preparing a professional binder for an IRS office audit (How to Prepare a Professional Binder for an IRS Office Audit).
  • If responding by mail, send via certified mail with return receipt and keep shipping tracking. If the IRS provides an online portal or secure upload, follow the instructions in your notice precisely.
  • When sending electronically, PDF is preferred; scan pages at 300 dpi so numbers remain readable.

Essential documents to include (typical list)

  • Signed copy of the tax return(s) under audit (Form 1040 and schedules; business returns as applicable).
  • A clear cover letter and one‑page summary mapping the request to attachments.
  • Income substantiation: invoices, 1099s, deposit detail from bank statements, payroll records.
  • Expense substantiation: itemized receipts, canceled checks, credit card statements, mileage logs.
  • Third‑party corroboration: contracts, leases, customer emails, or vendor statements.
  • Bank statements covering the dates in question.
  • Calculations and reconciliations: spreadsheets that show how you arrived at totals.

Cover letter template (short)

[Date]
Internal Revenue Service
[Address from notice]

Re: [Taxpayer name, SSN/EIN last 4, Notice number, Tax year]

Attached please find documents in response to the Notice dated [date]. Enclosed: 1) copy of the tax return, 2) income supporting documents (Attachments A1–A3), 3) expense documentation (Attachments B1–B5). If you need originals or additional information, please contact me at [phone/email].

Sincerely,

[Name, title, phone]

Deadlines, extensions, and timing

  • Always respond by the date on the notice. If you need more time, call the examiner and request an extension in writing; document the call. The IRS often grants short extensions if requested before the deadline.
  • Keep copies of everything you send and record the date and method of submission.

Common mistakes and how to avoid them

  • Sending an unorganized packet: use the one‑page map so an examiner can find items quickly.
  • Omitting a cover letter or direction: don’t assume the examiner will infer your position.
  • Overwhelming the file with unnecessary documents: include supporting docs that directly relate to the request and flag where the evidence appears.

When to involve a tax professional

Hire a CPA, enrolled agent, or tax attorney when: the amounts at issue are large, the issue involves potential penalties or fraud, the audit includes legal questions (e.g., domicile, business classification), or you are uncomfortable dealing directly with the IRS. For mail responses and templates, see our walkthrough on responding to a tax audit by mail (How to Respond to a Tax Audit by Mail: Templates and Timing). Also review the general documents the IRS expects for field audits in our related article (Preparing for an IRS Field Audit: Documents to Gather).

Authoritative references

A final practical note from practice

I’ve seen cases resolved quickly when the taxpayer presented a one‑page summary and clear backup. If you prepare your packet during the tax year instead of after, you’ll save time and reduce stress if an audit occurs.

Disclaimer

This article is educational and does not constitute tax, legal, or financial advice. For advice tailored to your case, consult a qualified tax professional or attorney.