Got an IRS Letter? Here’s What To Do Next

Received a tax audit letter? Receiving an IRS letter (also known as a “correspondence audit”) can be surprising, but it’s likely that you won’t even need to visit an office or call a representative to handle your situation, whatever it may be.

Most issues can be handled via mail and, occasionally, with a phone call. The letter usually contains clear, simple instructions on what you’re expected to do next.

Here are some tips to keep in mind if you’re ever selected for a tax audit and need help.

Keep copies of your records

This is a pre-emptive move to save you from scrambling later. Keep records of all of your transactions, 1099s, W-2s, paycheck stubs, and, of course, a copy of your actual tax return. Make sure you retain all correspondences with the IRS if you receive any notices. When dealing with IRS representatives over the phone, make sure to take down their ID numbers, names, the time at which you spoke to them, and specific points they may have related to you.

Do the calculations and talk to a tax professional

Human error is always inevitable when the IRS sends calculations. (In 1998, the IRS sent apologies to 20,000 taxpayers for mistakes in handling their accounts.)

Math mistakes rarely lead to a full audit. In this situation, it’s best to send the IRS support for your calculations, along with any important or relevant source documentation. Make your response as clear and concise as you can. You can also request additional information if the letter itself is unclear to you as the IRS typically provides contact information on the letter you receive. Use that contact information to call the IRS for more details.

If you’re confused or unsure, however, you can also seek out a qualified tax professional to help you sort through the letter’s requests.

Know the common types of letters

The most common ways taxpayers are selected include:

1. Random selection based on statistical data
2. Document matching, which occurs when the IRS matches 1099s and W-2s reported to them and compares it to what individuals actually report on their tax returns. It deals with unreported income from another source. Sometimes it’s a company you may not be familiar with, or income erroneously reported on an earlier return.
3. Questioning the accuracy of taxpayers’ returns. Correction notices are sent out when the IRS says they’ve found an error on your return and corrected it for you. They usually ask you to remit a certain amount of money based upon their updated calculation. In this case, sign and date the notice and include your payment. However, if you disagree, you can also write back to the IRS and provide proof of why you believe your return was prepared accurately.
4. The use of artificial intelligence to select returns for audit. According to a GAO report published in March 2026, the IRS has 126 active AI applications, including tools used for audit selection. 

The only notice that permits the IRS to do anything is the CP 90–Final Notice of Intent to Levy and Notice of Your Right to a Hearing. After the final notice, they must wait 30 days before taking action. During the 30-day window, you can file a request for a meeting with an IRS appeals officer through a Collection Due Process (CDP) hearing.

Dispute when you can

The Government Accounting Office says that 48% of IRS notices are “incorrect, unresponsive, or incomplete.” If you disagree with the notice,you may want to dispute it. It might be wrong after all.

Don’t forget about your state returns. If you respond to any federal letters, you may have to change the information on those state tax returns as well.

Be calm and respond on time

Receiving an IRS letter can feel unsettling. But consider that more than one million letters are sent each year simply because people failed to sign their returns.

If you do end up owing quite a bit, the IRS will usually work with you on a payment plan. And sometimes, after IRS notices are sent and you provide documentation to substantiate your tax return position, the IRS will actually owe you money. Just make sure you respond on time, usually within 60 days, or the IRS may put a lien on your property, serve a penalty, or take other unpleasant action.

We can help you with your letter or notice from the IRS. Check out the TurboTax Audit Support Center for more information.