Preparing for a Correspondence Audit: Remote Documentation Tactics

Quick overview

A correspondence audit is an IRS examination handled through written notices rather than in‑person visits. The IRS will list the specific items it wants you to verify and a deadline for your response (most notices give about 30 days, but check your notice). Preparing remote documentation efficiently reduces back‑and‑forth, speeds resolution, and lowers the risk of penalties (IRS, Audits Overview: https://www.irs.gov/individuals/audits).

In my 15 years advising clients on audits and tax compliance, the cases that close quickly are the ones where the taxpayer treats the notice as a project: authenticates the request, maps each requested item to supporting documents, and packages those documents in a clear, indexed response. Below are practical tactics I use with clients to assemble a professional, remote submission that the IRS can process without additional questions.

Step 1 — Confirm the notice is real and note deadlines

• Verify the notice number, the date, and the IRS address or contact information at the top of the letter. Scammers mimic official language, so compare the notice to IRS guidance on correspondence audits and scams (IRS Audits Overview; IRS Tax Scams/Consumer Alerts: https://www.irs.gov/newsroom/tax-scams-consumer-alerts).
• Check the deadline and whether the notice offers a secure online submission option. Many correspondence audits still require a mailed response, but some IRS units provide secure portals — always follow the instructions on your notice.
• Record the response due date in your calendar and plan to submit at least 7 days before the deadline when using mail (to allow for delivery time) or immediately if using a secure upload.

Step 2 — Create a clear index and checklist

Before pulling documents, make a two‑column index: one column lists the IRS’s requested items (or the line items on your return), the other lists the documents you will attach to verify each item. This creates a direct “map” the IRS examiner can follow.

• Example index rows: “Schedule C gross receipts” → attach bank deposit totals, POS reports, invoices, ending-of-year reconciliation; “Charitable contributions” → attach receipts, cancelled checks, acknowledgement letters.
• Use a simple numbering scheme (e.g., Item 1, Item 2) and repeat those numbers on each attached document header.

Step 3 — Gather and prioritize documents

Collect the primary records first, then supporting materials:

• Primary verification: Form W‑2s, 1099s, business bank statements, deposit summaries, payroll records, and signed receipts/acknowledgements for donations.
• Secondary support: invoices, contracts, appointment logs, daily sales reports, credit card statements, canceled checks, correspondence with payers or payees.
• If your documents are from a prior year, include the relevant tax return page(s) that shows the line item under question.

Tip: For business receipts, a year‑end profit & loss summary and bank reconciliation are often useful; they give context and let the IRS see totals match bank activity.

Step 4 — Digitize and name files consistently

Most correspondence audits are resolved faster when the IRS can quickly scan attachments.

• Use a flatbed scanner or a phone scanning app that outputs searchable PDFs (OCR) when possible.
• File naming convention: [Notice#][Item#][DocumentType][YYYY].pdf — e.g., CP200001BankStatement2023.pdf. This keeps attachments ordered and identifiable.
• Limit per‑file size (typical email portals or uploads may have limits). For large submissions, split documents into logical bundles (e.g., BankStatements_Part1.pdf, Part2.pdf).

Step 5 — Redact sensitive details, but keep identifying info

• Redact full Social Security Numbers except the last 4 digits if you must include them on supporting documents. Keep account numbers truncated except where the IRS specifically requests full numbers.
• Include a cover page with your full name, taxpayer identification (last 4 digits of SSN unless the notice asks for full SSN), tax year, notice number, and a one‑sentence summary of what the package contains.

Step 6 — Write a concise, professional cover letter

A short, indexed cover letter improves clarity. Your cover letter should:

• State the notice number, tax year, taxpayer name, and tax ID (as the notice requests).
• List attachments by item number and a one‑line explanation for each.
• Provide a contact phone number and say whether you (or your representative) may be contacted for follow up.
• If you’re represented, include Form 2848 (Power of Attorney) so the IRS will speak with your tax pro (see our article on the role of power of attorney: “The Role of Power of Attorney in Tax Audits and Collection Matters” https://finhelp.io/glossary/the-role-of-power-of-attorney-in-tax-audits-and-collection-matters/).

Template excerpt (one line): “Attached: Item 1 — Schedule C gross receipts: deposit report and bank statements (Item1Bank2023.pdf).”

Step 7 — Choose the delivery method and document shipping

• Follow the notice instructions. If it asks for mailed documents, send them by U.S. Postal Service Certified Mail with Return Receipt or a tracked courier, and keep the tracking and delivery receipt.
• If the notice provides a secure upload link, use it and retain confirmation screenshots or email confirmations.
• Keep scanned copies of everything you send, and log the shipment date, method, and tracking number in your audit log.

Step 8 — Maintain an audit log and version control

Create a simple spreadsheet tracking each action and document: date received, document name, how it was sent, who signed, and any IRS response. This protects you if the IRS claims they never received materials and helps if a follow‑up question arises.

Common mistakes to avoid

• Sending unsorted, unindexed stacks of documents. The IRS examiner may not parse them the way you expect.
• Omitting a copy of the tax return page in question. Always include the return page to show where the figures come from.
• Over‑explaining. Provide the documentation, a short explanation, and let the numbers speak.
• Responding late. If you need more time, call the number on the notice or request an extension in writing before the deadline.
• Ignoring security. Never email attachments with full SSNs to unsecured addresses.

When to get professional help

Engage a CPA, EA, or tax attorney when:

• The dollar amount in dispute is large or penalties are likely.
• The notice alleges unreported income or fraud indicators.
• You would rather have a professional speak directly to the IRS. If you hire representation, file Form 2848 so the practitioner can communicate for you (see our link above).

Example case (how the tactics work)

A small business client received a notice questioning 2023 gross receipts. We created an index mapping the IRS line item to three supporting documents: year‑end POS report, monthly bank deposits, and a reconciliation spreadsheet. I recommended OCR PDFs, a one‑page cover letter, and certified mail with tracking. The IRS reviewed the indexed bundle and accepted the reconciliation — the case closed with no change.

Related resources and internal guides

• For step‑by‑step help gathering records, see our guide: “How to Gather Records for an IRS Audit: A Step‑by‑Step Guide” (https://finhelp.io/glossary/how-to-gather-records-for-an-irs-audit-a-step-by-step-guide/).
• Need a tailored document packet example? Read: “Preparing a Document Packet for an IRS Correspondence Audit” (https://finhelp.io/glossary/preparing-a-document-packet-for-an-irs-correspondence-audit/).
• To understand differences in audit types, see: “Correspondence vs Field Audits: What to Expect and How to Prepare” (https://finhelp.io/glossary/correspondence-vs-field-audits-what-to-expect-and-how-to-prepare/).

Frequently asked questions (short answers)

• How long does the IRS take to respond after I send documents? It varies — some cases close within weeks, others take months. The IRS will usually notify you of the result by mail.
• Can I appeal if I disagree with the findings? Yes — you can appeal per the IRS appeals process. Save all documentation and consider representation.
• What if the notice is a scam? Do not send documents or money. Verify on IRS.gov and contact the IRS directly using a number on their website, not the notice.

Final checklist before sending

• Indexed cover letter that references the notice number and tax year.
• Copy of the return page(s) showing the questioned item.
• Primary and supporting documents with consistent file names.
• Redacted sensitive numbers as appropriate, plus a contact number.
• Delivery method chosen, tracking confirmed, and audit log updated.

Professional disclaimer
This article is educational and does not replace personalized tax advice. For complex disputes, significant amounts at stake, or uncertainty about your rights, consult a licensed tax professional or an attorney. See IRS audit and appeals guidance for official procedures (IRS Audits Overview: https://www.irs.gov/individuals/audits).

Author note
In my practice, the taxpayers who prepare an indexed, professional submission almost always shorten the audit timeline. Treat the notice like a request for a small legal filing: organized, numbered, and clearly labeled — it helps examiners say “case closed.”