Correspondence Audits: The Most Common IRS Audit and How to Handle It
Not every IRS audit involves sitting across from an agent in an intimidating government office. In fact, the most common type of audit never involves any face-to-face meeting at all. The correspondence audit is conducted entirely through the mail, and while it's the least intensive form of IRS examination, it still requires careful handling to avoid unnecessary complications. What Is a Correspondence Audit? A correspondence audit is when the IRS sends a letter requesting clarification or documentation for specific items on your tax return. This might be a request for receipts supporting a charitable deduction, documentation for a medical expense deduction, or verification of business expense categories. The letter will identify exactly what's being questioned and what documentation the IRS wants to see. The good news is that the scope of a correspondence audit is typically narrow. The IRS is asking about specific items, not conducting a comprehensive review of your entire retur...