Quick overview
A correspondence audit is limited in scope: the IRS mails a letter asking for documents to verify specific items on your return (income, deductions, credits, etc.). Responding with focused, well‑organized documentation is usually enough to resolve these audits without in‑person meetings. (See IRS Publication 556 for procedures: https://www.irs.gov/pub/irs-pdf/p556.pdf.)
Documents to gather — by category
- Income
- W‑2s, 1099‑NEC/1099‑MISC/1099‑INT/1099‑DIV, K‑1s
- Bank statements that show deposits not reported on a 1099
- Proof of expenses and deductions
- Receipts, invoices, canceled checks, and credit‑card statements that match amounts claimed
- Business profit & loss statements, vendor invoices, and proof of payment for business expenses
- Home office: floor plan, square footage calc, utility bills, lease/mortgage statements (see documentation tips below)
- Charitable contributions
- Written acknowledgement from the charity for donations $250+; receipts, bank records or canceled checks for smaller donations
- Asset transactions and property
- Settlement statements (HUD/closing), purchase invoices, receipts for capital improvements and depreciation schedules
- Other supporting records
- Mileage logs or contemporaneous vehicle records, canceled checks for tax‑related payments, correspondence with third parties
For business audits, include ledgers, POS reports, payroll records, and vendor contracts. For rental or investment property, include leases, expense receipts, and depreciation worksheets.
How to present documents (organization and formatting)
- Match each document to the line item or issue the IRS identifies in the letter. Create a one‑page cover sheet that lists: the IRS letter number, tax year, and the items you’re documenting (e.g., “Charitable donations — $1,200 — receipts A–F”).
- Use tabs or a simple PDF with bookmarks for each issue. Label each attachment with the date and a short description.
- Provide copies, not originals, unless the IRS specifically requests originals. Keep originals in a safe place.
- If you mail documents, send them via certified mail with return receipt or use an IRS secure e‑file/upload option if available. Keep a copy of everything you send.
For templates and detailed packet organization, see FinHelp’s guide to building an effective audit response packet and preparing an audit binder:
- Audit response packet: https://finhelp.io/glossary/building-an-effective-audit-response-packet-templates-and-organization-tips/
- Audit binder basics: https://finhelp.io/glossary/preparing-an-audit-binder-documents-to-organize-before-an-irs-audit/
Timing and response tips
- Check your IRS letter for the exact deadline; many correspondence letters request a response within 30 days, but dates vary—confirm on the notice. (IRS audits overview: https://www.irs.gov/faqs/irs-audits)
- Respond only to the issues listed. Don’t volunteer extra information unless it directly supports the items asked for.
- If you need more time, contact the IRS using the phone number on the letter and ask for an extension in writing; document that request.
Common mistakes that delay resolution
- Sending unrelated or poorly labeled documents that force IRS examiners to hunt for evidence.
- Failing to provide proof of payment (sending a receipt with no bank or canceled‑check evidence).
- Missing or incomplete contemporaneous records (e.g., mileage logs created after the fact).
When to get professional help
- Complex business issues, large adjustments, or notices that propose significant tax, penalties, or interest—consult a CPA, enrolled agent, or tax attorney.
- If you disagree with the IRS determination after responding, you can appeal. See our audit appeal overview: https://finhelp.io/glossary/how-to-appeal-an-irs-audit-from-irc-6213-notices-to-tax-court/
In my 15 years preparing taxes and managing client audits, a short, organized packet that ties each document to the IRS’s question consistently produces the fastest, cleanest outcomes. Small details (dates, payees, matching amounts) matter.
Recordkeeping reminders
- Keep documents for at least three years from the date you filed the return. If you omitted more than 25% of gross income, keep records for six years. Keep property records (basis information) for as long as you own the property. (IRS recordkeeping guidance: https://www.irs.gov/taxtopics/tc305)
Final checklist before you send
- One‑page cover explaining the packet
- Documents organized by issue with clear labels
- Copies (not originals) unless requested
- Proof of delivery (certified mail/return receipt)
- Contact info and daytime phone number on the cover sheet
This article is educational and not a substitute for personalized tax advice. If the correspondence alleges a large tax change, penalties, or criminal issues, contact a qualified tax professional immediately. Authoritative sources used: IRS Publication 556 and the IRS audit information pages listed above.
