Correspondence audit

The IRS conducts hundreds of thousand of IRS tax audits as correspondence IRS tax audits. The correspondence audit is the least threatening IRS tax audit for the tax payer and the IRS audit in which the tax payer has the greatest chance of winning.

How does the correspondence audit start?

This Correspondence audit process generally starts when a tax payer receives a tax notice from the IRS computer that the tax payer' s tax return has been changed. This IRS audit flag is often a result of the IRS computer matching program.

Example of correspondence audit case

For example, if the tax payer reports $5,000 in wages for the tax year but the IRS computer catches the tax discrepancy, determine the correct tax amount of tax due on the additional $5,000 in wages, and send the tax payer a bill for the additional tax owing.

Most correspondence audits are done by the IRS service center where the tax return were filed. In an IRS correspondence audit, only a small number of items are usually questioned of the tax return.

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