Correspondence audit (continues...)

Don't immediately send the check to the IRS

If the tax payer receives the correspondence audit letter from the IRS, do not automatically send the IRS a check for the amount that the IRS correspondence audit letter says the tax payer owed. The IRS sometimes makes mistakes. The IRS also makes mistakes in its correspondence audits, so don't jump into conclusion that a bill increasing the taxes a tax payer owes is accurate.

Example of issues for IRS correspondence audit

For example, there may be an incorrect social security number on the w2 (such as with wages) or IRS tax form 1099 such as dividends from a mutual fund or interest from banks. If the tax number is off by only one digit, the IRS may believe that the tax payer received more taxable income than the tax payer actually did.

Only after the tax payer has conducted a thorough review, comparing a copy of the tax return with the IRS notice, can the tax payer be certain that the IRS is either correct or incorrect.

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