If you are contacted by the IRS for a correspondence audit it is essential that you respond promptly. Here are some tips to responding to a correspondence audit:
- Always respond within the indicated response time. Generally, the IRS notice will allow 30 days for a response. If additional time is needed, request an extension of time in writing prior to the expiration of the deadline
- Address each issue in the correspondence audit separately and provide detailed explanations, calculations, or supporting documents for the taxpayer’s position.
- Provide reconciling schedules to resolve an income reporting issue
- Document the progress of the audit in writing. If telephone contact is made, mail or fax a confirming letter outlining what was discussed and what was agreed upon. Make sure to record the badge number of the IRS contact.
- Never mail original documents to the Service Center. If supporting documentation is requested, send copies only; Service Centers occasionally lose or misplace documents.
- When corresponding with the Service Center, include a copy of the immediately preceding correspondence sent by the Service Center. This allows prompt matching of the file with the correspondence, which reduces the likelihood of error.
- Consider sending all correspondence by certified mail, return receipt requested. This provides positive proof the information was forwarded in a timely fashion.
When dealing with the IRS it is important to remember that the IRS agent you deal with is a tax expert and you should consider having a tax expert represent you. Please contact us if you have any questions.