What You Need To Know About Correspondence Audit
A correspondence audit through the mail is commenced when a questionable item on your tax return is uncovered by the IRS computers. You’ll be informed of the discrepancy on an IRS notice and you will be requested to submit documentation to support your return. If the error is mathematical, you will be requestd to pay additional taxes or be given a refund.
You should always cooperate with a correspondence audit and be very happy that you weren’t chosen for a face-to-face audit. Remember that it’s very important to keep copies of your return and any attached documents just for audit or other IRS problem purposes.
The IRS makes mistakes, so don’t automatically mail the additional taxes demanded without further inquiries on your end. Verify the corrections by comparing a copy of the tax return with the information on the IRS notice.
Follow the instructions on the IRS notice promptly. It is more trouble than it’s worth if ignored.
Sign and date the IRS notice and send it with the payment if you agree with it. If you disagree with it, follow the instructions on the notice. Do this within the stated due date. Attach copies of documentation that will support your position.
If you disagree with the notice, the IRS will evaluate your claim, and if it’s allowed, you’ll be contacted and the audit with cease. If the claim is disallowed, the IRS will send an Examination Report to you, giving you 30 days to accept the changes and sign it or ask for an appeal.
The name and telephone number of the auditor handling the case will be on the IRS notice, so you may contact him for queries about the audit.
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