Audits By Mail
Most of the time, the IRS accepts your tax returns as you filed them. However, it selects some for additional review, also known as an audit, to determine if you accurately reported income, expenses, and credits.
If the IRS selected your return for audit (also called examination), it doesn’t automatically mean something is wrong. Once the IRS completes the examination, it may accept your return as filed or propose changes. These changes may affect the amount of tax you owe (a proposed deficiency) or the amount of your refund.
Download the full IRS Publication 3498-A, The Examination Process (Examinations by Mail)
The IRS conducts audits in two ways – by mail, or in person. This topic deals with an audit by mail – where the IRS sends you a letter explaining your tax return has been selected for examination and identifying the items under review. The letter will outline:
Read the letter and follow the instructions.
Compare the IRS’s proposed changes in the letter to your tax return to make sure you and the IRS are starting from the same point, with the same figures (numbers on your tax return). Review the letter and any attachments to find out what information you need to gather.
If there’s a difference between any paperwork you have and what the IRS is asking for, ask the employee whose name is on your notice.
Submit all documentation requested by the due date to the address in the letter.
If you don’t understand what to provide, you’ve options:
Once the IRS completes the initial review, it will:
For more information about what happens next, see the How will this affect me? section (below).
If the IRS accepts your tax return as originally filed, you’re done. If it proposes changes, a few things can happen.
If the IRS doesn’t accept the documentation for your tax return, you’ll get a letter explaining any proposed changes.
Contact the IRS at the number shown on the letter, if you don’t understand the changes. If you do understand them, decide if you agree or disagree with some or all the changes.
If you agree with all the proposed changes:
If you don’t agree with some or all the proposed changes:
If the IRS’s examiner still proposes a change to your return, you can:
If you don’t respond by the due dates in the letter, the IRS may disallow what you claimed on your return and issue a Statutory Notice of Deficiency. This is a legal notice the IRS is proposing an additional deficiency (balance due). It gives you 90 days to petition the United States Tax Court (Tax Court) for review of your case. If your address is outside the United States, you have 150 days.
Once you’ve petitioned the Tax Court, if you haven’t already had a conference with the Office of Appeals, the IRS Office of Chief Counsel may forward your case to Appeals for a conference.
Both the Office of Appeals and the United States Tax Court are generally “prepayment forums” which means that you can dispute the proposed adjustment before the IRS assesses it.
The 90-day (or 150-day) deadline to file a petition in Tax Court can’t be extended. If you miss the deadline, you won’t be able to have a judge review your case without first paying the amount due. The 90 or 150 days doesn’t include as the last day a Saturday, a Sunday, or a legal holiday in the District of Columbia.
There are fees to petition to the Tax Court. If you can’t afford to pay the filing fees, you can ask for a waiver.
Browse common tax issues and situations at Get Help.
If your IRS problem is causing you financial hardship, you’ve tried repeatedly and aren’t receiving a response from the IRS, or you feel your taxpayer rights aren’t being respected, consider contacting Taxpayer Advocate Service (TAS).
You may be eligible for representation from an attorney, certified public accountant (CPA), or enrolled agent (EA) associated with a Low Income Taxpayer Clinic (LITC). LITCs also provide information about taxpayer rights and responsibilities in different languages for individuals who speak English as a second language.