An IRS letter is an official notice from the Internal Revenue Service (IRS) sent by mail for various reasons, such as questions about your tax return, changes to your account, requests for more information (like identity verification), or a balance due; you must read it carefully and act by the due date to avoid penalties, as it details specific issues and required actions.
The Internal Revenue Service (IRS) will send a notice or a letter for any number of reasons. It may be about a specific issue on your federal tax return or account, or may tell you about changes to your account, ask you for more information, or request a payment.
We may send you a notice or letter if: You have a balance due. Your refund has changed. We have a question about your return.
The IRS mails letters or notices to taxpayers for a variety of reasons including:
An IRS audit letter typically contains the taxpayer's name, tax ID number, contact information, and a request for additional documentation to support claims on the tax return. It may also include the name of the IRS officer handling the case and invite the taxpayer to a meeting.
Look for the official IRS logo and letterhead, including the correct address and phone number. Dates should be recent, accurate, and accurately formatted (month spelled out), and they should include official IRS security or file numbers you can refer to for more information. A fake letter won't have this information.
A notice may reference changes to a taxpayer's account, taxes owed, a payment request or a specific issue on a tax return. Taking prompt action could minimize additional interest and penalty charges.
Signs Your IRS Audit Has Turned Into a Criminal Investigation
You can find digital copies of most IRS notices in your online account, under the 'Notices and Letters' section.
The IRS is a government agency and the audit letter is sent by certified mail.
Letters 5071C, Potential Identity Theft During Original Processing with Online Option, is mailed to taxpayers to notify them that the IRS received an income tax return using your name, Social Security number (SSN) or individual taxpayer identification number (ITIN).
7 Types of IRS Certified Mail
The government has no legal obligation to notify you that you're under investigation. There is no constitutional right to know that prosecutors are building a case against you.
Not reporting all of your income is an easy-to-avoid red flag that can lead to an audit. Taking excessive business tax deductions and mixing business and personal expenses can lead to an audit. The IRS mostly audits tax returns of those earning more than $200,000 and corporations with more than $10 million in assets.
Audit odds are low, but the IRS uses automated programs to identify issues. Common red flags include unreported income and excessive deductions. High earners and digital currency users may face extra scrutiny. Maintaining strong records and specifical documentation can help prevent issues.
What happens if you ignore it: After the deadline passes, the IRS can levy bank accounts, garnish wages, and seize property without further notice. You lose critical appeal rights that would have stopped these actions.
Check which tax year the notice is for and follow the instructions provided; you usually have 30 days to respond. Compare the IRS adjustments to your records and tax return. If you agree with the notice, indicate that on the response form and send a check or money order for any additional taxes due.
A letter or notice is the first way the IRS will contact a taxpayer. There are a few ways a taxpayer can check to see if it's really the IRS: Log in to their secure IRS Online Account to see if the letter or notice is in their file. Review common IRS letters and notices: Understanding Your IRS Notice or Letter.