Correspondence Audit Checklist: A Complete
Reference for Taxpayers Facing IRS Mail Audits
What Is a Correspondence Audit
A correspondence audit is an IRS examination conducted entirely by mail, where the IRS requests specific documents to verify items on your tax return. Unlike field audits, there are no in-person meetings. The IRS sends you a notice identifying the particular tax year and the deductions, credits, or income items that require documentation. How you respond—or whether you respond at all—determines the entire outcome of your audit.
Who This Checklist Is For
This applies to you if
- You received an IRS audit notice by mail (typically Letter 566, CP 75 series, or Letter
525)
- The notice references a specific tax year and particular items on your return
- You have not yet submitted your response or supporting documents
- You need guidance on what documents the IRS requires and applicable deadlines
This does not apply if
- You received a Notice of Deficiency (90-day letter) after an audit had already closed
- You are facing a criminal tax investigation
- Your audit involves in-person meetings at an IRS office or your home (field audit)
- You received a levy or wage garnishment notice
Understanding the Process
The IRS operates correspondence audits through the Automated Correspondence Exam (ACE)
system within the Examination Division. When your return is selected, you will receive an initial contact letter explaining which items are being questioned and what documentation is required.
Response deadlines are typically 30 to 45 days from the date of the letter. If you do not respond, the IRS will send follow-up correspondence and eventually issue a Statutory Notice of
Deficiency, giving you 90 days to petition the U.S. Tax Court before the assessment becomes final.
Step-by-Step Response Checklist
Step 1: Read Your Notice Carefully and Identify What Was Requested
Locate your audit letter and highlight the specific items the IRS is questioning, such as charitable contributions, business expenses, or dependent claims. The notice will list exactly what documentation is required for each questioned item.
Step 2: Note the Response Deadline on Your Calendar
Find the “Reply by” or “Response due” date on your notice and mark it on your calendar. Count backward five business days to create your personal deadline, ensuring your response arrives before the official due date.
Step 3: Determine Whether You Need More Time
Review your records immediately to assess whether you can gather all the requested documents within two to three weeks. If you need additional time, prepare to request an extension before the deadline rather than responding late.
Step 4: Request an Extension If Needed
Write a brief letter to the address on your notice stating: “I received your notice dated [date]. I request a 30-day extension to gather the requested documents. I will respond by [new date].”
Include your Social Security number, tax year, and notice reference number. Send via certified mail.
Step 5: Organize Your Documents by Category
Create separate folders for each questioned item (such as “Charitable Donations” or “Business
Expenses”). Number all pages sequentially and prepare a simple index showing which pages correspond to which claim on your return.
Step 6: Prepare a Cover Letter Explaining Your Response
Write a straightforward cover letter: “Enclosed are the documents requested in your notice dated
[date]. Each item is labeled to match your questions.” Include your name, Social Security number, phone number, and the tax year under examination.
Step 7: Include Only What Was Requested
Submit only the documents the IRS specifically asked for in the notice. Do not attach extra materials, even if you believe they are helpful, as additional documents can introduce new questions and delay the audit.
Step 8: Make Complete Copies Before Mailing
Photocopy your entire response package, including the cover letter and all supporting documents. Note the date you mailed your response, and send everything via certified mail with a return receipt requested to create proof of delivery.
Step 9: Avoid Unnecessary Contact with the IRS Examiner
Do not call the IRS unless the notice was unclear or you genuinely cannot locate a specific document and need clarification. Unnecessary contact can create additional scrutiny or delay the review process.
Step 10: Wait for the IRS to Review Your Submission
After mailing your response, allow the IRS time to review your documents. The IRS will send an acknowledgment letter within 30 days of receiving your materials, followed by either audit closure, additional information requests, or a proposed adjustment.
Step 11: Respond Promptly to Any Follow-Up Requests
If the IRS requests additional documents or clarification, follow the same organized response process. Multiple information requests are normal in correspondence audits and do not indicate a problem with your case.
- Ignoring the notice completely: If you do not respond by the deadline, the IRS will
- Responding after the deadline without requesting an extension: Late responses
- Sending documents without a cover letter or organization: The IRS examiner
- Submitting unrelated documents or information about other tax years: Extra
- Assuming silence means approval: The IRS will contact you only if it needs more
- Failing to keep copies of everything sent: If the IRS claims they never received your
- Wage garnishment and bank levy release
- Tax lien removal and credit protection
- Offer in Compromise and installment agreements
- Unfiled tax return preparation
- IRS notice response and representation
Step 12: Review Any Proposed Adjustments Carefully
If the IRS proposes changes to your return, examine the adjustment report (Form 4549) to understand what was disallowed and why. You have options to agree, provide additional documentation, or request consideration of your appeal.
Common Mistakes That Backfire proceed through multiple notice stages and eventually issue a Statutory Notice of
Deficiency, disallowing the questioned items without reviewing any documentation. may be rejected or ignored. Always ask for an extension in writing before the deadline if you need more time to gather documents. handles hundreds of cases. Disorganized submissions without clear explanations can
create confusion and may lead to requests for clarification or unfavorable determinations. materials introduce confusion and can trigger additional audit questions about items the
IRS was not originally examining. information or proposes changes. If you receive no response after several months, contact the number on your original notice to request a status update. response, you will have no proof of what you submitted or when, without copies and certified mail receipts.
What Happens If You Ignore the Audit
If you do not respond to the correspondence audit notice, the IRS will send additional follow-up letters. After exhausting correspondence attempts, the IRS issues a Notice of Deficiency (also called a 90-day letter), proposing to disallow the questioned items.
You then have 90 days to file a petition with the U.S. Tax Court. If you miss that deadline, the
IRS will assess additional tax, interest from the original return due date, and applicable penalties. Once assessed, the IRS can begin collection actions, including wage garnishments and bank levies.
When to Contact a Tax Professional
Seek professional assistance immediately if the audit involves multiple tax years, complex business income, rental property, or investment losses. If you have already missed the deadline or do not understand what the IRS is requesting, professional guidance can protect you from costly mistakes. Additionally, if the audit requests bank records or extensive financial documentation that could expose other issues, a tax professional can frame your response to limit further examination.
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