The IRS conducts hundreds of thousand
of IRS tax audits as correspondence IRS tax audits. The
correspondence audit is the least threatening IRS tax audit
for the tax payer and the IRS audit in which the tax
payer has the greatest chance of winning.
How does the correspondence audit
This Correspondence audit process generally
starts when a tax payer receives a tax notice from
the IRS computer that the tax payer' s tax return has
been changed. This IRS audit flag is often a result
of the IRS computer matching program.
Example of correspondence audit case
For example, if the tax
payer reports $5,000 in wages for the tax year but the IRS
computer catches the tax discrepancy, determine the correct tax
amount of tax due on the additional $5,000 in wages, and
send the tax payer a bill for the additional tax
Most correspondence audits are done by the
IRS service center where the tax return were filed. In an IRS
correspondence audit, only a small number of items are usually
questioned of the tax return.