The IRS has a set procedure it follows to notify taxpayers when they start an audit. Knowing how the IRS notifies taxpayers of an audit can help identify valid communications, detect fraud, and prepare to respond to the review of your tax return.
Notification by Mail Only
When a taxpayer is being audited by the IRS, a letter is drafted and sent to the taxpayer through the United States Postal Service as an official form of communication. The IRS will never send auditing notifications through a phone call, email, text message, or social media. If someone claims to represent the IRS, demands instant payment, and threatens to arrest you, that is definitely a scam.
A letter from the IRS will include an audit notice, a letter number, and will be printed with official government letterhead. IRS contact information will be listed, and the reason for the letter will be explained.
Details Included in an Audit Notice
The tax audit letter states which tax year they are reviewing and which parts of your tax return they are examining. Some people get audited where the IRS is reviewing just one item, such as a deduction or credit. Others get audited and the IRS does a full income and expense review.
The audit letter states what the IRS requires from you, such as records, an explanation, or a change to your tax return. It will also tell you how to respond, whether by mail, submit something online, or meet with someone in person.
Types of Audits Explained in the Letter
The way the IRS tells you about an audit often depends on the type of audit being conducted. For a correspondence audit, the letter will request documents to be sent by mail or uploaded online. For an office audit, the notice will ask you to schedule a meeting at a local IRS office. For a field audit, the letter will inform you that an IRS agent will visit your home, business, or tax professional’s office.
The letter will outline the scope of the audit so you know what to prepare.
Response Deadlines and Your Rights
Every IRS audit letter includes a response deadline. Failing to respond can result in the IRS making changes to your return based on the information they already have, potentially increasing your tax liability.
The notice also explains your rights as a taxpayer, including the right to representation by a CPA, enrolled agent, or tax attorney. You are not required to face the IRS alone.
