IRS Audit Letters
There are various types of form letters the IRS may send. See also our page on Audits. Here are some of the most common IRS audit letters you may receive:
- Publication 1 – Taxpayer Bill of Rights (highlights):
- The Right to Retain Representation – this is where we come in. It is your right to hire us. In fact, the taxpayer does not need to ever attend the audit. However, counsel must be competent or the agent can circumvent counsel and deal with the taxpayer directly BEWARE!
- The Right to Challenge the IRS’s Position and be Heard – one time we had an agent reversed on appeal saving the taxpayer of $700,000 in taxes. Agents are people too and make mistakes.
- The Right to Appeal an IRS Decision in and Independent Forum.
- IRS Letter 3391 – 30 Day Nonfiler Letter: See our page on Unfiled Tax Returns.
- IRS Letter 2205 – Letter from IRS Revenue Agent advising of tax audit, and Rights as Taxpayer, including enclosure 609, Your Rights as a Taxpayer and Notice, Privacy Act Notice.
- Form 4564 – Information Document Request. This form is used in an IRS office audit. The agent will typically request a host of documents for the taxpayer to bring to the IRS location. It is critical to have someone represent you at this meeting. This is similar to a production of documents request in litigation.
- IRS Letter 2202. This the notice of examination that is computer generated and reviewed by an IRS examining officer. The IRS computers select returns for examination based on anomalies and an IRS examining office reviews the computer selection. The result is embodied in IRS Letter 2202.
- Notice of Audit and Examination: This is the notice to the taxpayer that his or her return will be audited and the IRS wants to meet. You must quickly respond to this notice.
- IRS Letter 950 – 30 Day Letter of Deficiency. This letter is sent after the IRS audit. It reports outstanding issues, deficiencies and over assessments.
- IRS Letter 525 – This is the, “hello, you are being audited” letter. It includes IRS proposed changes, which you could simply agree to. A response within 30 days is required.
- IRS Letter 531 – Notice of Deficiency also referred to as a 90-day Letter): Notice of additional tax for the tax year identified in the letter. Caution is urged regarding this letter.
- IRS CP 2000 Notice: Automatic Adjustment Notice: This is a common adjustment notice.
- IRS Letter 692, Request for Consideration of Additional Findings: You will have to act quickly usually within 15 days.
- IRS Letter 915. This is a cover-type letter that transmits the audit findings to the taxpayer.
- Form 4549 – Income Tax Examination Changes. This usually concludes an audit. This notifies the taxpayer of the amount due per the IRS examiners audit. The changes are subject to acceptance by the IRS Area Director, IRA Area Manager, IRS Specialty Tax Program Chief, or IRS Director of Field Operations.
- Form 886-A – Explanation of Items. This provides the detail of the Income Tax Examination Changes. This form is also used to provide additional detail of an IRS request. For example, the IRS could request an explanation as to whether an employee business expense was reimbursed by the employer (thus nullifying its deductibility).
- Form 4605-A, Examination Changes – Partnerships, Fiduciaries, Small Business Corps. & Domestic Intl. Sales Corp.
- If you are successful you will receive a no change letter – Letter 3401, No Change Report Transmittal Letter, or Letter 3401-S, Flow Through Entity No Change Transmittal Letter.
- IRS Form 5564 – Waiver of Notice of Deficiency. If you agree to the audit changes, you can waive the time to object so as to save interest.
- IRS Notice CP 2501. This is an under reporter notice. We handle many of these. These can be typically cured by supplying appropriate documentation to the IRS.
- IRS Notice CP 2000. This notice is issued if various deadlines are ignored such as the time period in the CP2501. The CP 2000 will provide additional time to respond. If ignored, a notice of deficiency will be issued. CP2000 can also be a notice of proposed changes regarding automated underreporting. See this blog post.
- IRS Letter 987. This is the closing letter. This is a notification that your audit has been closed.
- IRS Letter 566-S. This is an opening letter of an IRS correspondence Audit. This letter will detail the evidence and documents requested by the IRS such as mileage log (mileage audit). Deadlines must be observed.
- Form 13825 Employee Business Expense Questionnaire. This is a questionnaire used by the IRS in Form 2106 Audits.
- Notice 609 Privacy Act Notice – included as part of IRS audit package.
- IRS Form 2848 – This is the Power of Attorney that enables me to represent you.