What to Do When You Get an IRS Audit Letter in the Mail (Correspondence Audits)
Correspondence audits represent over 80% of all IRS examinations. Here is how to organize your receipts and respond without expanding the scope.
Katherine M. Johnson, CPA, CTRS
Lead Tax Resolution CPA
A correspondence audit is an IRS examination conducted by mail requesting substantiation for specific line items (e.g. Schedule C expenses, earned income credit, or charitable deductions). Responding with organized documentation directly addressing the requested items prevents the audit from expanding.
Opening an IRS audit letter is stressful, but over 80% of all IRS audits are 'correspondence audits' conducted entirely through the mail by Campus Examination units.
# How to Respond to a Correspondence Audit Notice (CP2000 / Letter 566)
1. Identify the Exact Items Questioned: Do not send entire shoeboxes of unrelated receipts.
2. Organize Proof Logically: Group receipts by category with matching bank statement lines highlighted.
3. Respect Statutory Deadlines: If you need more time, submit a written 30-day extension request prior to the deadline.
Frequently Asked Questions (FAQ)
Q: Should I handle a correspondence audit myself or hire a CPA?
If documentation is clean and simple, you can handle it yourself. If records are missing or complex, hiring a CPA prevents the examiner from expanding the audit to other tax years.
Summary & Next Steps
At Next Level Tax Resolution, we handle correspondence audit responses to protect your deductions.
Katherine M. Johnson, CPA, CTRS
Katherine M. Johnson is a licensed CPA with over 30 years of experience and a Certified Tax Resolution Specialist (CTRS). She personally handles every case — representing individuals and businesses before the IRS and state revenue departments nationwide.
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