Navigating the Nuances of IRS Correspondence
The Internal Revenue Service (IRS) primarily utilizes certified mail for audit notifications. This certified mail requirement ensures that the taxpayer receives the audit notice and is legally bound to respond within the stipulated timeframe.
However, in certain instances, the IRS may opt to send an initial letter via regular mail. This typically occurs when the IRS requires additional information or clarification regarding a specific aspect of the taxpayer’s return. If the taxpayer fails to respond to this initial letter in a timely manner, the IRS may escalate the communication to a certified letter, formally initiating the audit process.
Understanding the Significance of Certified Mail
The IRS’s preference for certified mail stems from its legal implications. Certified mail provides a documented record of the delivery and receipt of the audit notice. This documentation serves as evidence that the taxpayer was duly notified of the audit and had ample opportunity to respond.
Responding to IRS Correspondence
Upon receiving any correspondence from the IRS, whether via certified or regular mail, it is crucial to respond promptly. Ignoring or delaying a response can result in severe consequences, including the assessment of penalties and interest.
If you receive an IRS letter requesting additional information, gather the necessary documentation and submit it to the IRS within the specified timeframe. If you have any questions or concerns, do not hesitate to contact the IRS directly or seek professional guidance from a tax attorney.
Seeking Professional Assistance
Navigating an IRS audit can be a complex and stressful process. If you receive an audit notice, consider consulting with a qualified tax attorney. An experienced attorney can provide valuable guidance, represent your interests during the audit process, and help you achieve a favorable resolution.
Additional Resources
Audits by Mail: What To Do
FAQ
Does IRS send audit letters by regular mail?
How will the IRS notify me of an audit?
What does an IRS audit look like in the mail?
What does an audit envelope look like from the IRS?
What is an IRS audit by mail?
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:
How do IRS audits work?
The IRS manages audits either by mail or through an in-person interview to review your records. The interview may be at an IRS office (office audit) or at the taxpayer’s home, place of business, or accountant’s office (field audit). Remember, you will be contacted initially by mail.
Do you get an IRS audit letter from an IRS agent?
Good news. For most people, this is far from reality. The IRS does 70% of audits by mail. But just because you get an IRS audit letter instead of an IRS agent at your door, the outcome may not be much different than a face-to-face audit with an IRS agent. In fact, in 2016, the IRS made a change to the return in 89% of all mail audits.
What percentage of tax returns are audited by the IRS?
In recent years, the IRS has audited significantly less than 1% of all individual tax returns. Plus, most audits are handled solely by mail, meaning taxpayers selected for an audit typically never actually meet with an IRS agent in person. Also, increased audits won’t happen overnight.