Quick overview

A correspondence audit is an IRS review handled by mail that asks you to verify specific items on a filed return—income, deductions, credits, or other entries. Because the IRS conducts these by correspondence, you usually won’t have in-person interviews. Still, a timely, professional response with the correct documents is essential to avoid escalations. For more on timeline expectations and what evidence matters, see our article on What to Expect in a Correspondence Audit: Evidence and Timelines.

Why preparation matters

In my 15 years advising clients through IRS contacts, I’ve seen well-prepared taxpayers resolve correspondence audits quickly—often with no change to their return—simply because they provided organized, persuasive documentation. Conversely, hurried or incomplete replies tend to trigger follow-up questions or conversions to more invasive audits.

How the IRS typically asks for documents

The IRS will send a notice or letter that identifies the tax year and specific items under review, and it will list the documents the examiner needs. Common notices related to mismatches and reporting issues include CP notices (for example, CP2000 for income mismatch) and other correspondence audit letters. Read the notice carefully for the deadline and required items (IRS: Understanding Audits; IRS: Documentation for IRS Examinations).

Document checklist (what to gather and why)

Below is a practical checklist organized by category. Use it as a packing list when you assemble your response packet.

  • Income

  • W-2s and 1099s (1099-NEC, 1099-MISC, 1099-INT, 1099-DIV). These prove reported income or reveal discrepancies.

  • Bank and brokerage statements showing interest, dividends, and sales proceeds.

  • Contract, payroll, or client payment records for freelance/self-employment income.

  • Deductions and expenses

  • Receipts, invoices, and bank or credit-card statements that support business or itemized deductions.

  • Mileage log (date, miles, purpose) and calendar notes for business travel.

  • Home office documentation (square footage, home and office photos, utility bills, lease agreement) if claiming the home-office deduction.

  • Charitable contributions: written acknowledgments for cash gifts of $250+ (IRS requires contemporaneous written acknowledgment), and Form 8283 and a qualified appraisal if noncash donations exceed $5,000 (IRS Pub. 526).

  • Credits and special items

  • Education expenses: Form 1098-T, receipts for tuition, payment records.

  • Child or dependent care: provider name, address, tax ID and receipts.

  • Proof for credits like the Earned Income Tax Credit: supporting income and dependent records.

  • Investments and property

  • Settlement statements (Form HUD-1 or closing disclosure) and Form 1099-S for real estate transactions.

  • Brokerage confirmations, trade date/settlement date details, and cost-basis worksheets for capital gains.

  • Business records

  • Profit and loss statements, bank reconciliations, invoices, receipts, and canceled checks.

  • Payroll reports, Forms 940/941 if payroll treatment is in question.

  • Other supportive documents

  • Prior-year tax returns for context.

  • Correspondence from payers or third parties that corroborates amounts reported.

  • Canceled checks or credit-card statements tied to payments.

How to organize your response (format + packaging)

A well-organized packet helps an examiner find evidence quickly and reduces the chance of follow-up:

  1. Read the IRS notice—follow its instructions first. Note the deadline and any specific identification number (e.g., CP number) and put that on every page.
  2. Make copies—send copies, never originals. Keep the originals for your records.
  3. Create a cover letter: brief, professional, and reference the notice ID, tax year, and a one-paragraph statement summarizing what you are sending.
  4. Include a one-page index/table of contents that lists every attachment and where it appears (e.g., Tab A: W-2s pages 3–4).
  5. Number pages and use tabs or labeled dividers to match the index.
  6. Highlight or annotate documents so the reviewer can quickly see the relevant lines or amounts.
  7. If a document is voluminous, include a short explanatory note that ties the evidence to the item on the return.
  8. If you are represented by a tax professional, include a completed Form 2848 (Power of Attorney) so the IRS will discuss the case with your representative.

Sample response letter (copy, customize, and send)

[Use your letterhead or your full name and address]

[Date]

Internal Revenue Service
[Address shown on the notice]

Re: Response to Notice [Notice Number or CP Number], Tax Year [YYYY]
Taxpayer: [Your name] SSN or ITIN: [last 4 digits]

Dear Sir or Madam:

I am responding to the notice dated [date of notice] regarding my federal income tax return for tax year [YYYY]. Enclosed please find copies of documents requested and additional items I am providing to substantiate the amounts reported on my return.

Enclosures (tabbed and indexed):

  • Tab A: W-2 forms for tax year YYYY
  • Tab B: 1099 forms and bank statements showing interest/dividends
  • Tab C: Receipts and invoices supporting business expenses
  • Tab D: Charitable donation acknowledgment letters (for donations of $250+)

I have sent copies only and retained the originals. If you need additional information or clarification, please contact me at [phone number] or [email address]. If you would prefer to discuss this matter with my authorized representative, please see the attached Form 2848.

Sincerely,

[Your signature]
[Your name printed]

Notes: label every page with the notice number and tax year, and include an index and page numbers.

Mailing and delivery tips

  • Send via a trackable method (certified mail with return receipt, or an equivalent carrier tracking service) and keep the proof of delivery.
  • Do not send originals unless the IRS specifically requests them—send copies and retain originals.
  • If the deadline is imminent and you can’t gather everything, send what you have with a short note requesting additional time to produce supplementary records. The IRS often grants reasonable extensions when requested promptly.

Common mistakes to avoid

  • Shipping unorganized stacks of papers with no index.
  • Failing to reference the notice ID—each page should state the notice number and tax year.
  • Sending originals and losing track of them.
  • Missing deadlines without attempting to request an extension.
  • Assuming a correspondence audit is inconsequential—unanswered issues can escalate to exams or adjustments.

What if you disagree with the IRS findings or need help?

If you disagree with the IRS’s proposed adjustment, you can explain your position in writing and submit additional evidence. If that doesn’t resolve the issue, you may request an appeal through the IRS Independent Office of Appeals (see our article on How Appeals Differ from Audits: Strategy and Outcomes). For an explanation of common notice types and how to read them, see Understanding the Tax Audit Letter: CP2000 vs. CP3219.

When to call a tax pro

  • You are uncomfortable assembling the records or the amounts in question are material (a large tax liability or penalty is likely).
  • The IRS requests records that might trigger additional issues (e.g., large business-loss claims, foreign assets, unreported income).
  • You want professional representation—file Form 2848 so your practitioner can correspond for you.

From my practice: having a short, annotated packet and a clear cover letter often reduces back-and-forth and resolves issues faster than sending documents without explanation.

After you respond

  • Watch for follow-up letters or a closing letter that explains whether the IRS accepted your documentation.
  • If the IRS adjusts your return and you agree, pay the assessed tax (or arrange a payment plan). If you disagree, follow the appeals options referenced above.

Authoritative resources

  • IRS, “Documentation for Internal Revenue Service Examinations” (IRS guidance on records retention and evidence). (IRS.gov)
  • IRS, “Understanding Audits” (overview of audit types and procedures). (IRS.gov)
  • IRS Pub. 526, Charitable Contributions (rules on substantiation, Form 8283, and appraisals).

Final tips

  • Keep a dedicated, year-round tax folder so you’re never scrambling when a notice arrives.
  • Build documentation habits: scan and label receipts electronically, keep mileage logs contemporaneously, and reconcile accounts monthly.
  • Treat correspondence audits as opportunities to correct honest errors—clear communication and good records usually resolve them quickly.

Professional disclaimer: This article provides general information and educational guidance based on current IRS practice and my professional experience. It is not individualized tax advice. For advice about your specific situation, consult a licensed CPA, enrolled agent, or tax attorney.

Internal links: For guidance on evidence the IRS prefers, see our related article What Evidence the IRS Finds Most Persuasive During an Audit. For a step-by-step walkthrough of correspondence audits, see Correspondence Audit Walkthrough: What You Need to Prepare.