Correspondence Audit
A correspondence audit is the most common type of IRS audit, conducted entirely by mail. The IRS sends a letter requesting specific documentation for one or two issues. The taxpayer responds by mailing the requested documents.
Exam Tip
Correspondence audit = most common (~75%), by mail only. 30 days to respond. Covers 1-2 issues. Can request Appeals if disagree. Know all three audit types.
What is a Correspondence Audit?
A correspondence audit is the simplest and most common IRS examination, handled through mail without in-person meetings.
Types of IRS Audits
| Type | Method | Frequency |
|---|---|---|
| Correspondence | By mail | ~75% of all audits |
| Office audit | At IRS office | Less common |
| Field audit | At taxpayer's location | Least common, most complex |
Correspondence Audit Process
| Step | Description |
|---|---|
| 1. Notice received | IRS letter identifies issues and documents needed |
| 2. Response | Taxpayer mails requested documentation |
| 3. Review | IRS examiner reviews documents |
| 4. Resolution | Agreement, additional requests, or appeal |
Common Correspondence Audit Issues
| Issue | Examples |
|---|---|
| Income matching | W-2/1099 discrepancies |
| Credits | EITC, education credits, CTC |
| Deductions | Charitable contributions, medical expenses |
| Filing status | HOH verification |
Exam Alert
Correspondence audits are the MOST COMMON audit type (~75%). Conducted entirely by mail. Taxpayers have 30 days to respond (extensions available). If you disagree with findings, request an appeal or file Form 12203 (Request for Appeals Review).
Study This Term In
Related Terms
Statute of Limitations (Tax)
The IRS generally has 3 years from the filing date to assess additional tax. This extends to 6 years if more than 25% of gross income is omitted. There is no statute of limitations for fraud or failure to file a return.
Penalty Abatement
Penalty abatement is the removal or reduction of IRS penalties due to reasonable cause or first-time penalty abatement (FTA) relief for taxpayers with a clean compliance history.
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