Quick answer: A correspondence audit is an IRS examination conducted primarily by mail for specific items on a return, such as a credit, filing status, income or deduction. It is a real audit, not merely a math notice, and the taxpayer should answer the stated issues with organized copies by the deadline.
This guide translates the controlling rule into filing and recordkeeping steps. It reflects official material available on August 17, 2026. Tax-year forms, software features, state rules and agency procedures can change, so use the instructions for the exact year and transaction involved.
At a glance
| Question | Practical answer |
|---|---|
| Who this applies to | Individuals and small businesses receiving an IRS examination letter by mail |
| What this does not cover | A field audit, automated underreporter notice, collection letter, or request by ordinary email |
| Where it is handled | The address or IRS Document Upload Tool shown in the authentic examination notice |
How the rule works
Start by identifying the legal character of the payment, account, credit, deduction, benefit or loan. A marketing label does not control the tax result. Dates, ownership, business purpose, filing status, income limits, residency and documentation can turn a superficially similar situation into a different answer.
- The opening letter identifies the tax year, items examined, records requested and response date.
- The IRS initiates audits by mail, not an unexpected phone call demanding immediate payment.
- Send copies rather than original documents and label evidence by issue and tax year.
- If more time is needed, contact the employee or number on the verified letter before the deadline.
- Taxpayers can disagree with proposed changes and generally request managerial review, Appeals or Tax Court procedures depending on the notice stage.
Practical example
The IRS asks Lee to substantiate a child-related credit. Lee verifies the notice through an IRS online account, creates an index of school and medical address records, uploads legible copies using the notice's approved tool, and keeps the confirmation. Lee does not send unrelated bank history.
This example isolates the principal rule. It is not a complete return calculation: phaseouts, other credits, state conformity, related-party rules, passive-loss limits and prior-year carryovers may change the outcome.
Step-by-step checklist
- Verify the notice number and tax year.
- Compare the examined items with the filed return.
- Create an issue-by-issue evidence list.
- Respond by the stated secure channel before the deadline.
- Read the examination report and preserve appeal deadlines.
Reconcile the result to the actual return, notice, lender disclosure or benefit statement before signing. Preserve the source documents, calculations and proof of submission; a software interview or account screen is not a substitute for evidence.
Records to keep
Keep the filed forms and schedules together with receipts, statements, contracts, account records and correspondence that establish amount, date, ownership and purpose. For an asset, credit or carryforward that affects later years, retain the origin-year worksheet through the final disposition or use year and the applicable limitation period.
Common mistakes to avoid
- Ignoring a letter because it is not an in-person audit.
- Sending original identity or property documents.
- Uploading a document dump without explaining which item each record supports.
Correct an issuer or agency error through the documented correction process rather than silently changing a reported amount. When the dollars are material, a notice deadline is close, or the facts involve more than one jurisdiction, obtain advice from a credentialed professional who can review the complete record.
Related NavajoTax guides
Continue with amended return audit screening, IRS audit lookback period. These related pages explain connected rules, but the current official form or agency instruction controls the transaction you actually report.
Frequently asked questions
Can a mail audit expand?
Yes. New information can lead the IRS to request more records, years or an in-person examination.
Can you call the examiner?
Use the contact information on the verified letter for procedural questions and to discuss timing.
What if the audit already closed?
Audit reconsideration may be available when an unpaid assessment resulted and new information was not previously considered.
Sources reviewed
Last reviewed: August 17, 2026. This article provides general educational information, not individualized tax, legal, investment, lending or benefits advice.