Audits by Mail–What to Do?

When you find yourself faced with a letter indicating that the IRS is auditing your tax return via mail, it’s essential to proceed with careful attention to detail. The letter you receive serves as your guide, outlining the specific issues under review and detailing the types of information required for submission. This may include providing an itemized list of expenses or deductions in question.

In cases where you encounter difficulty in verifying claimed amounts, it’s imperative to provide a thorough explanation of the issue and the methodology employed to determine the reported figures on your tax return.

Once you’ve gathered the requested information, ensure to attach photocopies of your documents to the audit letter received. If the enclosed envelope is inadequate for your documents, utilize the address provided on the envelope for submission. Remember, it’s advised not to send original documents, and retaining copies of all submitted materials is advisable.

For those opting to fax their documents, the audit letter typically includes a fax number for convenience. However, to ensure proper association with your case file, it’s crucial to include identifying information such as your name and Social Security number on each page.

Timeliness is key in responding to audit requests, with documents ideally submitted back to the IRS within the specified 30-day timeframe. Should this deadline present challenges, reaching out to the provided contact number to discuss the situation and request an extension is recommended.

Upon receipt of your submitted information, the IRS conducts a thorough review. Subsequently, you’ll receive another letter either accepting the provided information or proposing changes to your tax return. Should changes be proposed, accompanying forms will be included, detailing the alterations and their rationale.

Should you agree with the proposed changes, signing and dating the relevant form and returning it, along with any applicable payment, is necessary. Conversely, if disagreements persist, avenues for appeal within the IRS and the courts are available, as outlined in the accompanying letter.

For comprehensive guidance on the audit process, Publication 3498-A (The Examination Process – Audits by Mail) is available on the IRS website, IRS.gov. This publication details your responsibilities and rights during and after the audit.

Remember, when managing audits by mail, careful adherence to the provided instructions is essential to ensure a smooth and efficient process.