The Initial Contact
An IRS audit begins with a letter. For correspondence audits, you receive a notice requesting specific documentation. For office audits, you receive a letter scheduling an appointment at an IRS office. For field audits, a revenue agent contacts you to schedule a visit to your home, office, or your representative's office.
The initial letter (Letter 220, Letter 2205A, or a CP75 for EITC audits) tells you what is being examined and what records you need to provide. Read it carefully. The IRS is specific about what they want, and providing exactly what they ask for — no more, no less — is the right strategy.
Information Document Requests
During the audit, the examiner will send Information Document Requests (Letter 566 or Letter 4564). These are formal requests for specific records: bank statements, receipts, contracts, mileage logs, whatever supports the items under examination. Respond to every item. If you do not have a document, explain why and provide alternative substantiation.
The 30-Day Letter
If the examiner proposes changes you disagree with, you will receive a 30-day letter (Letter 525 or Letter 950). This letter explains the proposed adjustments and gives you 30 days to either agree, partially agree, or file a written protest requesting an Appeals conference. This is your best opportunity to resolve the dispute without going to court.
Appeals Conference
If you file a protest, your case goes to IRS Appeals. An Appeals officer reviews the case independently and attempts to negotiate a settlement. Most audit disputes are resolved at Appeals. You will receive scheduling letters (Letter 380) and eventually a decision letter.
Statutory Notice of Deficiency
If you do not agree at Appeals, or if you skip the 30-day letter entirely, the IRS sends a statutory notice of deficiency (Letter 3219 or CP3219A). This is the 90-day letter that gives you the right to petition Tax Court. It is the last step before the IRS can legally assess the additional tax.
The Closing Letter
If the audit results in no changes, you receive Letter 3064C or Letter 3572 confirming the case is closed. Keep this letter permanently. It is your proof that the IRS examined those items and accepted them.
An audit is a process with defined steps and defined rights. Know the steps, exercise the rights, and the audit becomes manageable instead of terrifying.