How to Respond to an IRS Audit Letter (The Right Way)

There is a right way and a wrong way to respond to an IRS audit letter. The wrong way is to do nothing, to overshare, or to call the examiner and start explaining. The right way is methodical: confirm the notice is real, identify what type it is, calendar the deadlines, and then — only then — decide what to send back.

Step 1: Confirm the Letter Is Real

The IRS opens audits only by mail. If anyone called, texted, or emailed you claiming to be the IRS and asking about your return, it’s a scam. A real IRS letter will arrive on official letterhead, list a notice number in the upper right corner (such as CP2000, Letter 525, or Letter 2205-A), and reference a specific tax year and a real IRS office address. If you’re unsure, call the IRS directly at 1-800-829-1040 — do not use any phone number on the letter you cannot independently verify.

Step 2: Identify What Type of Notice You Received

Not every IRS letter is an audit. Look at the notice code in the upper-right corner:

• CP2000 — a proposed change from the Automated Underreporter Program. The IRS thinks a 1099 or W-2 doesn’t match what you reported. This isn’t technically an audit, but you handle it similarly.
• Letter 2205-A or 2205-B — an actual examination notice. The IRS is auditing your return.
• Letter 525 — a 30-day letter following an examination. You disagreed (or didn’t respond), and the IRS is offering Appeals.
• Letter 3219 / Notice CP3219A — a Statutory Notice of Deficiency. The 90-day letter. Critical deadline.
• CP14, CP501, CP503 — collection notices, not audit notices. Different process.

Step 3: Calendar Every Deadline Immediately

Mark the response date on a calendar today. For most audit notices it’s 30 days from the letter date — not from the day you received it. If you can’t respond by then, you can request an extension in writing before the deadline expires. Examiners routinely grant 30-day extensions if you ask early and provide a reason. They are far less generous after the deadline has passed.

If your notice is a Statutory Notice of Deficiency, the 90-day deadline is jurisdictional. Missing it by even one day forfeits your right to petition the Tax Court without paying first. Mail the petition by certified mail with return receipt, and do it well before day 90.

Step 4: Pull Your IRS Transcripts

Before you write a single word back to the IRS, get your account transcripts at irs.gov/get-transcript. Three transcripts matter: the Account Transcript (shows assessments, payments, and audit activity), the Wage and Income Transcript (shows every 1099, W-2, and 1098 the IRS received about you), and the Return Transcript (your filed return as the IRS has it).

These transcripts often reveal what the audit is actually about, even when the notice is vague. A CP2000 might claim you underreported income — the Wage and Income Transcript will tell you exactly which payer and how much.

Step 5: Decide Whether to Hire Representation

Three professionals can represent you before the IRS: tax attorneys (covered by attorney-client privilege), CPAs (limited tax-practitioner privilege), and enrolled agents (no privilege but specifically trained in IRS practice). For correspondence audits over a single straightforward issue, you may not need help. For office or field audits, audits with potential penalties, or anything where criminal exposure is even a remote possibility, get a tax attorney involved before you send anything back.

Step 6: Respond — in Writing, on Time, and Only to What Was Asked

Three rules govern every response to the IRS. First, always respond in writing, never by phone alone. Second, respond on or before the deadline. Third, respond to what was actually asked — don’t volunteer information about other years, other deductions, or other issues the examiner didn’t raise.

Send everything by certified mail with return receipt, or fax with a confirmation page. Keep copies of every page you send. Number the pages and include a cover letter that itemizes what you’re providing. Examiners lose documents; your record of what was sent and when can save your case.

A Sample Response Cover Letter

Your cover letter should be brief and reference the notice number, tax year, and your taxpayer identification number. State that you are responding to the specific items requested, list each enclosure by exhibit number, and confirm the response is timely. Do not include explanations of the underlying transactions in the cover letter — attach a separate memo for that if needed. Keep the cover letter clean and clerical; save the argument for the substantive memo.