What This Letter Means
Letter 1020 is a follow-up letter used during an IRS examination (audit) of your return. It tells you where the examination stands or what is still needed to finish it. The letter has several paragraphs, and only the checked one applies to you. The header lists the person to contact and can show a last date to respond.
Common Paragraphs
- Records returned. The IRS is returning records you provided and will tell you the results when the exam is done. No action is needed for now.
- Information still needed. The IRS asked for information earlier and didn't get it. You're asked to mail it or schedule another interview with the examiner within 10 days so the decision is based on complete information.
- Case transferred. At your request, your return was sent to another IRS office. That office will contact you about the time and place of your appointment.
- Appointment rescheduled. The letter gives the new date and time.
- More time granted. The IRS extended your time to reply and shows the new date.
- Case back from Appeals. Your case was sent back to the examination group for more development. The IRS will contact you if needed and tell you when the case goes back to Appeals.
What to Do
- Read which paragraph is checked. That is the whole message.
- If information is still needed, send it or schedule the interview right away. An examiner who doesn't have your documents decides the case on what the IRS already has.
- Write down any new appointment or reply date and keep it.
- Send copies, not originals, and keep a record of everything you send. Use certified mail for paper responses.
- Call the person named in the letter if anything is unclear.
Getting Help
You can have a representative deal with the examiner for you. File Form 2848 to authorize an attorney, CPA, or enrolled agent. If the examination is causing a hardship or isn't moving, the Taxpayer Advocate Service can also help.
If you're in an IRS audit and received Letter 1020, call us at (813) 229-7100.