Decoding IRS Communications: 

Differentiating Audit Letters, Examination Notices, and Information Requests

The standard way for the IRS to communicate with taxpayers about audits is through various IRS audit letters. The IRS sends an initial contact letter at the beginning of the audit, and then they may send multiple other letters during the audit process. 

Unfortunately, it can be tricky to tell the difference between audit letters and other types of IRS notices. To help you out, this post looks at the types of letters you may receive during an audit. Then, it lists other IRS notices that aren't audits and explains what they mean.

Key takeaways

• The IRS notifies taxpayers about audits through mailed notices. 
• During the course of the audit, the IRS may send multiple notices. 
• Not all IRS notices are audit notices – sometimes, the agency adjusts your return or requests information without requesting an audit.
• Never ignore a letter from the IRS.
• If you need help deciphering an IRS notice, reach out to a tax professional.

IRS Audit Letters – What to Expect

Here are the common IRS audit letters and notifications you may receive during the audit process. They are listed in the order they are likely to arrive during an audit; however, depending on the scope of the audit, you may not receive all of these letters. 

• Notice of Audit and Examination Scheduled – You're going to be audited, and the IRS wants to schedule time to meet or talk with you.
• 566 Initial Contact Letter - The IRS often uses the 566 series of letters to make initial contact with individuals and businesses that have been selected for an audit. Depending on the type of audit and the taxes being audited, the number 566 may be followed by a range of different letters. 
• IRS CP75 Notice: Exam Initial Contact Notice – This notice states that the IRS is auditing your tax return. You will need to provide additional documentation to support credits that were claimed on your return. Generally, this notice is about the Earned Income Credit. The IRS will not release your tax refund until you respond to this letter.
• Notice 2202B – This is another initial audit contact letter. It will outline the return selected for audit, the type of audit, and any next steps you need to know. 
• IRS Form 4564 (IDR): Information Document Request – The IRS wants information to back up the claims you made on your tax return. They may ask for receipts, financial documents, or other details.
• IRS Letter 692: Request for Considering of Additional Findings – This letter is sent along with a report that will give you detailed adjustments made to your tax return. If all looks good and you agree to the adjustments, then you can sign the agreement and return it to the IRS. If you do not agree, you can submit a request to appeal/protest with the office that sent you the letter. You will have to act quickly on this letter if you do not agree because you only have 15 days from the date you received it to request an appeal.
• CP22E: The IRS sends this notice after it makes changes to your tax return during an audit that lead to a balance due. When you receive this notice, you can agree and pay the bill, or you can request an audit reconsideration to present new information to the IRS. 
• IRS Letter 915: Letter to Transmit Examination Report – This letter is to notify you of adjustments in your tax amount. If you agree with the adjustment, then you can sign and return the agreement form. If you don’t agree, you will need to file an appeal/protest within 30 days of the letter being received.
• IRS Letter 950: 30-Day Letter Straight Deficiency or Over Assessment – This letter is sent after IRS field audits. It is used for un-agreed, straight deficiency, straight over-assessments, or a combination of deficiency and over-assessments. This letter will state the findings, and if you agree, then you can sign and return the agreement form to the IRS. If you don’t agree with the findings, you have 30 days to file an appeal/protest.
• IRS Letter 531: Notice of Deficiency – This letter is to notify you that you owe additional tax for the tax year(s) identified in the letter. This letter will explain how to dispute the adjustments if you do not agree. You can either agree and pay or file a petition with the tax court within 90 days from the date you received the notice.|

 

It is important to pay attention to IRS audit letters because an action is typically required on your part. Just remember that if you don’t agree with the IRS's findings, you will always have a chance to dispute them with the IRS, but action must be taken soon, or it will make it much more difficult. There is limited time to appeal audit results – if you miss deadlines, you risk losing your chance to appeal.

If you are unsure of the appropriate actions to take, it is a good idea to consider hiring a tax professional to help you with the audit.

Other IRS Letters: Return Reviews, Adjustments, Etc.

In some cases, the IRS sends letters that may feel like audit notices, but they're really just return review or adjustment letters. For example, this happens if the agency makes changes to your return or selects it for review. These letters notify you about the changes, and they outline how to dispute if you disagree:

• IRS Letter 525: General 30-Day Letter – This letter is to inform you that the IRS has a proposed adjustment to your tax return. This can be from a math error or something else that the IRS is fairly confident you have made a mistake on. If you agree with the proposed change made by the IRS, then you can sign and return the agreement form. If you don’t agree with the adjustment made by the IRS, then you can request an appeal/protest with the IRS office that sent you the letter.
• IRS Letter 3391: 30-Day Nonfiler Letter – The IRS will send this letter if it believes you have a tax liability due from returns that you have not filed. The letter includes a proposed adjustment to your tax liability. If you agree with the adjustment proposed by the IRS, then you can sign and return the agreement to the IRS. If you don’t agree with the adjustments, then you will have 30 days to file for an appeal/protest with the IRS.
• IRS Letter 4464C: Return Review - The IRS is reviewing your tax return. The agency may be looking at your income, credits, or deductions. The IRS will not send out your refund until it completes the review of your tax return. Although this is not an audit, it could lead to an audit.
• IRS CP 2000 Notice: Automatic Adjustment Notice – This is one of the most common automated adjustment notices. This notice will show proposed changes to your tax return. The information the IRS uses when sending these out is when it compares income, payments, credits, and other deductions reported on your tax return with the information provided by third parties. Be careful with this notice because many times they are wrong. If you agree, you can agree and pay the amount owed. If you don’t agree, you can call the IRS or contest it in writing. If you don’t contest within 60 days, then the IRS will make the adjustment final within 60 days.
• 3219-A Notice of Deficiency: The IRS has assessed tax against you based on making adjustments to your tax return. This happens when the agency receives information from third parties that wasn't reported on your return.
• 3219-N Notice of Deficiency: The IRS has generated a substitute for return for a tax year you haven't filed. You have 90 days to respond, or the proposed assessment will move forward. 

 

FAQs about audit letters and IRS Notices

Why did I receive an audit letter?

If you received an audit letter, that's because the IRS has selected your return for an audit. The selection may have been triggered by their matching system (ie, info reported on one form didn't match what was on your tax return) or because your return had certain red flags.

When does the IRS send audit letters?

The agency sends audit letters before initiating an audit. Typically, this happens within three years of you filing the return – the agency only has three years to audit returns. However, if they find signs of fraud or significant income understatement, they may go back further.

What if I ignore an audit letter?

Then, the IRS will move forward with the audit without your input. They may adjust your return in a way that leads to a higher tax liability, and they may add audit penalties as well. 

What's the difference between an audit and an examination?

The terms audit and examination are used interchangeably by the IRS. If you receive a notice about an exam, that means the IRS wants to audit your return.

What's the difference between an audit notice and an information request?

Audit notices let you know that the IRS is starting your audit. You'll also receive one when the audit is concluded. Information requests come during the audit – they ask for more information to back up the details on your tax return. However, in some cases, the IRS sends information requests without starting a full-blown audit. If you're unsure of what a notice means, reach out to a licensed tax professional.

Get Help Responding to IRS Audits and Audit Letters

If you are looking for help with a tax audit, review this list of tax professionals who have experience resolving IRS audits or start a search below and click "audit or examination" using the filters on the search page under "problem experience."