What should you do when you receive an IRS correspondence audit notice?

Receiving an IRS correspondence audit notice can be unsettling, but these mail audits are typically routine and resolvable if you act quickly and methodically. This guide explains what the notice means, how to verify its authenticity, the step-by-step response process, what documents to gather, timelines and possible outcomes, and when to call in a tax professional. I draw on years of client work handling hundreds of paper audits to highlight practical choices that reduce stress and unnecessary tax adjustments.

Is the letter genuine?

Before you do anything else, confirm the notice is legitimate:

  • Check the return address—IRS mail comes from an IRS processing center and not from private companies.
  • Review the notice code or form number at the top (for example, CP2000 is an income mismatch notice). Cross-check the code and instructions with the IRS website: “If you receive a notice or letter from the IRS” (IRS.gov) and “Facts about audit notices” (IRS.gov).
  • Never click links or call phone numbers in a suspicious email. The IRS will initiate most correspondence by postal mail. Use the official IRS website (https://www.irs.gov) or the phone number printed on the notice to verify.

If you suspect fraud, contact the IRS Identity Protection Specialized Unit or visit IRS.gov for next steps.

Read the notice carefully — what is it asking for?

Each correspondence audit letter will:

  1. Identify the tax year and line items under review.
  2. Specify the documentation or explanation requested (for example, W-2s, 1099s, receipts, or a written explanation).
  3. Give a deadline for response (many letters request a response within 30 days, but check the notice for exact timing).
  4. List contact instructions and where to send documents.

Do not assume the notice is a general audit; it is usually targeted to a small number of issues.

Step-by-step response plan

  1. Pause and prepare — don’t panic. Read the complete letter before you act.
  2. Gather records. Collect only the documents the IRS requests. Typical items include:
  • W-2s, 1099s, or brokerage 1099-B/1099-INT/1099-DIV
  • Bank statements, canceled checks, or deposits that support reported income
  • Receipts or logs supporting business or charitable deductions
  • Home office worksheets or mileage logs if those deductions were claimed
  1. Check your return. Compare the IRS’s point(s) of inquiry against what you filed. Look for transposed numbers, omitted 1099s, or missing supporting schedules.
  2. Prepare a short cover letter. Briefly and professionally explain what you are enclosing and reference the notice code and tax year. A clear cover letter reduces back-and-forth. (A sample cover template appears below.)
  3. Send copies, not originals. Keep the originals; mail copies and retain a copy of everything you send.
  4. Use traceable delivery. Certified mail with return receipt or a courier with tracking creates proof of timely response. For some notices the IRS provides a secure upload option—follow the instructions on the notice if available.
  5. Follow up. If you don’t hear back in 30–60 days after the IRS receives your response, call the number on the notice and refer to your submission tracking number.

Sample cover letter (short and to the point)

[Date]

Internal Revenue Service
[Address shown on the notice]

Re: Notice [insert notice code], Tax Year [YYYY]

Enclosed please find copies of the documents requested in your notice dated [date]. If you need additional information, please contact me at [phone number].

Sincerely,

[Taxpayer name, SSN last 4 digits]

(Keep a copy of this letter with your records.)

Documentation checklist by common issue

  • Unreported income (e.g., missing 1099): 1099s, paystubs, bank statements, employer contact.
  • Business or self-employment income: profit & loss summary, invoices, bank deposits, Schedule C support.
  • Itemized deductions: receipts, canceled checks, charitable acknowledgment letters.
  • Home office: square footage calculation, photos, utility bills, and a simple allocation worksheet.
  • Rental income: lease agreements, 1099s received, expense records.

For more on preparing a tidy packet to send to the IRS, see our guide on Preparing an Audit Packet: What to Send to an IRS Auditor.

Common pitfalls to avoid

  • Don’t over-share. Provide only the records requested (unless you are asked for additional items).
  • Don’t ignore the deadline. Missing a deadline can lead to proposed adjustments and additional interest and penalties.
  • Don’t send original documents unless the IRS explicitly requests them.
  • Don’t call the IRS with incomplete information. Pull your documents together first.

Typical timelines and outcomes

  • Receipt acknowledgment: the IRS may take 30–60 days to process incoming correspondence depending on volume.
  • Resolution options: the IRS may accept the documentation and close the case, propose an adjustment (which you can agree to), or issue a notice proposing additional tax (e.g., CP2000) that outlines your appeal rights.
  • If an adjustment is proposed and you agree, follow the instructions to sign and return the response; if you disagree, you generally have specific appeal steps and deadlines included in the notice.

If the notice you receive is a CP2000 (income mismatch), follow the tailored steps in our article Responding to a CP2000 Notice: Steps to Take.

When to hire a professional

Contact a CPA, enrolled agent, or tax attorney if any of the following apply:

  • The amounts at issue are large or involve multiple years.
  • The IRS is proposing penalties that could be substantial.
  • You are unsure how to reconstruct missing records.
  • The case will likely escalate to an in-person audit or collection action.

If you decide to engage representation, use IRS Form 2848 (Power of Attorney) so your representative can speak to the IRS on your behalf (see IRS: About Form 2848).

Appealing an unfavorable result

If you disagree with the IRS’s proposed adjustment, the notice will explain appeal options and deadlines. Appeals for correspondence audits are usually handled through the IRS Office of Appeals or by requesting a collection due process hearing if the matter moves into collection. See our detailed page on How to Use the IRS Appeals Process to Resolve Audit Disputes for next steps.

Recordkeeping that prevents future notices

Good recordkeeping reduces the odds of mail audits. Keep the following for at least three years (and longer for certain items):

  • Tax returns and supporting documents
  • 1099s and W-2s
  • Receipts for significant deductions
  • Bank and brokerage statements

For practical recordkeeping practices that cut audit friction, read Top Tax Recordkeeping Practices to Speed Up Refunds and Audits.

Collections, penalties, and interest — what to expect

An accepted adjustment will increase tax due, and interest runs from the original due date until paid. Penalties (accuracy-related or late-payment) can apply depending on facts and intent. If you cannot pay an assessed balance, consider short-term payment plans or an Offer in Compromise (special conditions apply). Always check the notice for the specific penalty code and the IRS guidance on payment options.

Real-world advice from my practice

In my experience working with clients on correspondence audits, three practical habits prevent escalation:

  1. Keep an organized digital folder for each tax year (W-2/1099, receipts, expense logs).
  2. When you receive a notice, stop filing or discarding paperwork for that tax year until the matter is closed.
  3. Respond with a concise explanation and the requested documents rather than a long defensive narrative — clarity wins.

One recent client received a notice claiming unreported freelance income. We provided the missing 1099 and a deposit ledger showing that income had been reported under a slightly different payor name. The IRS accepted the documentation and closed the case within 45 days.

Next steps and final checklist

  • Verify the notice is from the IRS.
  • Note the deadline and contact instructions.
  • Gather requested documents and create a short cover letter.
  • Send copies by traceable mail or use the IRS secure portal if available.
  • Keep detailed copies and a record of delivery.
  • Consider professional representation for complex or high-dollar matters.

Helpful IRS resources and additional reading

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Disclaimer

This article is educational and does not replace personalized tax advice. Rules change and facts differ by case; consult a qualified tax professional for guidance specific to your situation.