What is an IRS Audit Letter?
An IRS audit letter is an official notification from the Internal Revenue Service (IRS) that they are examining your tax return. This doesn't automatically mean you've done something wrong; audits are a way for the IRS to ensure everyone is paying their fair share. An IRS audit letter sample 2019 would show specific information about why your return is being looked at and what you need to do next. It is incredibly important to take any IRS correspondence seriously and respond promptly. Here's what you'll typically find in an IRS audit letter:- Your name and address
- The tax year being audited
- The reason for the audit (e.g., discrepancies in reported income, deductions, or credits)
- What documentation the IRS needs you to provide
- Instructions on how to respond and deadlines
- Discrepancies: When information reported on your tax return doesn't match what other sources (like employers or banks) reported to the IRS.
- Unusual Deductions or Credits: Claiming deductions or credits that are significantly higher than average for your income level.
- Random Selection: Sometimes, returns are selected for audit completely at random.
| Code | Meaning |
|---|---|
| TC 570 | Freeze on your account, often related to an audit. |
| CP2000 | Notice of Proposed Changes to your tax return due to unreported income or incorrect credits. |
Letter Example: Notice of Underreported Income
US DEPARTMENT OF THE TREASURY
INTERNAL REVENUE SERVICE
[IRS Service Center Address]
Date: [Date of Letter]
[Your Name]
[Your Address]
Subject: Notice of Underreported Income for Tax Year [Year]
Dear [Your Name],
Our records indicate that there may be a difference between the income reported on your tax return for the year [Year] and income information received from third parties, such as employers or financial institutions.
Specifically, we have received information that shows total wages of $[Amount] from employer [Employer Name], which was not reported or understated on your return.
We have enclosed a worksheet to help you compare the information we have with the amounts on your return. Please review this information carefully and respond within [Number] days by providing any necessary corrections or documentation.
Sincerely,
Internal Revenue Service
INTERNAL REVENUE SERVICE
[IRS Service Center Address]
Date: [Date of Letter]
[Your Name]
[Your Address]
Subject: Notice of Underreported Income for Tax Year [Year]
Dear [Your Name],
Our records indicate that there may be a difference between the income reported on your tax return for the year [Year] and income information received from third parties, such as employers or financial institutions.
Specifically, we have received information that shows total wages of $[Amount] from employer [Employer Name], which was not reported or understated on your return.
We have enclosed a worksheet to help you compare the information we have with the amounts on your return. Please review this information carefully and respond within [Number] days by providing any necessary corrections or documentation.
Sincerely,
Internal Revenue Service
Letter Example: Claiming Business Expenses
US DEPARTMENT OF THE TREASURY
INTERNAL REVENUE SERVICE
[IRS Service Center Address]
Date: [Date of Letter]
[Your Name]
[Your Address]
Subject: Audit of Your Tax Return for Tax Year [Year] - Business Expenses
Dear [Your Name],
We are initiating an audit of your federal income tax return for the tax year [Year]. We selected your return for examination because of the business expenses you reported.
Specifically, we would like to examine your deductions for [Type of Expense, e.g., business travel, meals]. Please provide documentation to support these expenses, such as receipts, invoices, and logs.
Please contact us at [Phone Number] within [Number] days to schedule an appointment or to arrange for us to receive the requested documentation.
Sincerely,
Internal Revenue Service
INTERNAL REVENUE SERVICE
[IRS Service Center Address]
Date: [Date of Letter]
[Your Name]
[Your Address]
Subject: Audit of Your Tax Return for Tax Year [Year] - Business Expenses
Dear [Your Name],
We are initiating an audit of your federal income tax return for the tax year [Year]. We selected your return for examination because of the business expenses you reported.
Specifically, we would like to examine your deductions for [Type of Expense, e.g., business travel, meals]. Please provide documentation to support these expenses, such as receipts, invoices, and logs.
Please contact us at [Phone Number] within [Number] days to schedule an appointment or to arrange for us to receive the requested documentation.
Sincerely,
Internal Revenue Service
Letter Example: Incorrectly Claimed Credits
US DEPARTMENT OF THE TREASURY
INTERNAL REVENUE SERVICE
[IRS Service Center Address]
Date: [Date of Letter]
[Your Name]
[Your Address]
Subject: Examination of Your Tax Return for Tax Year [Year] - Credits Claimed
Dear [Your Name],
This letter is to inform you that we have selected your tax return for the year [Year] for examination. Our examination will focus on the [Name of Credit, e.g., Education Credit] you claimed.
To support your claim for this credit, please provide documentation such as:
Sincerely,
Internal Revenue Service
INTERNAL REVENUE SERVICE
[IRS Service Center Address]
Date: [Date of Letter]
[Your Name]
[Your Address]
Subject: Examination of Your Tax Return for Tax Year [Year] - Credits Claimed
Dear [Your Name],
This letter is to inform you that we have selected your tax return for the year [Year] for examination. Our examination will focus on the [Name of Credit, e.g., Education Credit] you claimed.
To support your claim for this credit, please provide documentation such as:
- Tuition statements
- Enrollment verification
- Receipts for qualified educational expenses
Sincerely,
Internal Revenue Service
Letter Example: Request for Additional Information (General)
US DEPARTMENT OF THE TREASURY
INTERNAL REVENUE SERVICE
[IRS Service Center Address]
Date: [Date of Letter]
[Your Name]
[Your Address]
Subject: Request for Additional Information - Tax Year [Year]
Dear [Your Name],
We are writing to you regarding your federal income tax return for the year [Year]. As part of our review process, we require some additional information to verify certain items on your return.
Please provide copies of the following:
Sincerely,
Internal Revenue Service
INTERNAL REVENUE SERVICE
[IRS Service Center Address]
Date: [Date of Letter]
[Your Name]
[Your Address]
Subject: Request for Additional Information - Tax Year [Year]
Dear [Your Name],
We are writing to you regarding your federal income tax return for the year [Year]. As part of our review process, we require some additional information to verify certain items on your return.
Please provide copies of the following:
- Your bank statements for the period of [Start Date] to [End Date].
- Any other documentation that you believe supports the figures reported on your return.
Sincerely,
Internal Revenue Service
Letter Example: Notice of Intent to Levy
US DEPARTMENT OF THE TREASURY
INTERNAL REVENUE SERVICE
[IRS Service Center Address]
Date: [Date of Letter]
[Your Name]
[Your Address]
Subject: Notice of Intent to Levy - Unpaid Tax Liability for Tax Year [Year]
Dear [Your Name],
This notice is to inform you that you have a delinquent tax liability for the tax year [Year] in the amount of $[Amount]. We have sent previous notices regarding this amount, but it remains unpaid.
If this amount is not paid within [Number] days from the date of this notice, the IRS may take legal action to collect the debt, which could include garnishing your wages, seizing your bank accounts, or taking other assets.
Please contact us immediately at [Phone Number] to discuss payment options or to resolve this matter.
Sincerely,
Internal Revenue Service
INTERNAL REVENUE SERVICE
[IRS Service Center Address]
Date: [Date of Letter]
[Your Name]
[Your Address]
Subject: Notice of Intent to Levy - Unpaid Tax Liability for Tax Year [Year]
Dear [Your Name],
This notice is to inform you that you have a delinquent tax liability for the tax year [Year] in the amount of $[Amount]. We have sent previous notices regarding this amount, but it remains unpaid.
If this amount is not paid within [Number] days from the date of this notice, the IRS may take legal action to collect the debt, which could include garnishing your wages, seizing your bank accounts, or taking other assets.
Please contact us immediately at [Phone Number] to discuss payment options or to resolve this matter.
Sincerely,
Internal Revenue Service
Letter Example: Audit Rejection of a Specific Deduction
US DEPARTMENT OF THE TREASURY
INTERNAL REVENUE SERVICE
[IRS Service Center Address]
Date: [Date of Letter]
[Your Name]
[Your Address]
Subject: Audit Findings - Disallowed Deduction for Tax Year [Year]
Dear [Your Name],
Following our examination of your tax return for the year [Year], we have reviewed the documentation you provided for the deduction claimed for [Specific Deduction].
Based on our review, we have determined that this deduction does not meet the requirements for deductibility under IRS regulations. Specifically, [Reason for rejection, e.g., the expenses were not ordinary and necessary for your business, or you did not provide sufficient proof].
As a result, we are proposing an adjustment to your tax liability. Please see the enclosed statement for details of the proposed changes. You have the right to appeal this decision. Instructions for appealing are included with this notice.
Sincerely,
Internal Revenue Service
INTERNAL REVENUE SERVICE
[IRS Service Center Address]
Date: [Date of Letter]
[Your Name]
[Your Address]
Subject: Audit Findings - Disallowed Deduction for Tax Year [Year]
Dear [Your Name],
Following our examination of your tax return for the year [Year], we have reviewed the documentation you provided for the deduction claimed for [Specific Deduction].
Based on our review, we have determined that this deduction does not meet the requirements for deductibility under IRS regulations. Specifically, [Reason for rejection, e.g., the expenses were not ordinary and necessary for your business, or you did not provide sufficient proof].
As a result, we are proposing an adjustment to your tax liability. Please see the enclosed statement for details of the proposed changes. You have the right to appeal this decision. Instructions for appealing are included with this notice.
Sincerely,
Internal Revenue Service