What This Letter Means
Letter 2205-B is the initial contact letter for a National Research Program (NRP) examination. A revenue agent sends it to start the audit. The National Research Program is how the IRS measures compliance. Each study picks a statistically valid, stratified random sample of returns, and yours was one of them.
Random selection doesn't mean the IRS thinks you did something wrong. It does mean the audit will be thorough. The IRS uses the results from each sampled return to estimate compliance for thousands of similar taxpayers, so examiners are told to record every adjustment, no matter how small, whether it favors the IRS or you.
The letter comes with Notice 1332, Why Your Return Is Being Examined, Notice 609, the Privacy Act notice, Publication 1, Your Rights as a Taxpayer, and Publication 4134, the list of Low Income Taxpayer Clinics.
What to Expect
- Every item selected gets examined. The examiner must make an inquiry or inspect records for each line item chosen for review.
- The scope can grow. If the examiner finds other issues, the audit expands to cover them. Size doesn't matter in an NRP case.
- It may happen at your business. Where possible, field examinations are held at your place of business.
What to Do
- Follow the contact instructions in the letter and meet any date it gives you.
- Decide who will handle the audit. You can authorize a representative with Form 2848.
- Gather the records behind your return for that year: bank statements, receipts, invoices, and support for income, deductions and credits.
- Keep copies of everything you give the examiner.
Why This Matters
An NRP audit is not a quick document check. Treat it like a full examination from the first contact. Going in organized, with your records in order, shortens the process and limits surprises.
If you received Letter 2205-B and want help with a research audit, call us at (813) 229-7100.