IRS Audit Notice in the Mail: The First 7 Things to Do (2026)

Action 1: Verify the Letter Is Legitimate

The IRS contacts taxpayers exclusively by mail for audit notices. They never start an audit by phone, email, or text — those are scams. A real audit letter comes on official IRS letterhead, references a specific tax year, lists a notice number (CP series for correspondence audits, "Letter" series for in-person), and provides a callback number you can verify by calling the IRS directly at 1-800-829-1040. If you are unsure, call the IRS main line and reference the notice number. Never call the number on a suspicious letter without verifying — fraudsters mimic IRS letterhead and ask for payment by gift card or wire.

Action 2: Identify the Audit Type

The notice specifies one of three audit types. (1) Correspondence audit (most common, 75%+ of audits) — handled entirely by mail; you send documents proving the items in question. (2) Office audit — you visit a local IRS office for a 2-4 hour interview. (3) Field audit (rarest, most serious) — an IRS agent comes to your home or business. The type tells you the level of preparation needed. Correspondence audits often involve a single line item (charitable deduction, business expense, or unreported income). Office and field audits typically cover the entire return and warrant professional representation.

Action 3: Note the Response Deadline

The letter gives you a deadline — typically 30 days from the notice date. Mark this prominently. If you cannot meet the deadline, request a one-time extension by calling the number on the notice within the first 14 days. Extensions of 30-60 days are routinely granted for correspondence audits when requested early. Missing the deadline without an extension often results in the IRS adjusting your return based on their assumptions and sending a bill — usually much worse than what you would have owed if you had documented your position.

Action 4: Gather the Specific Documents Requested

The notice lists exactly what the IRS wants. Common requests: receipts for charitable contributions over $250, mileage logs, business expense substantiation, foreign account documentation, gambling income/loss records, or rental property records. Gather only what is specifically requested. Do not volunteer additional documents — that expands the audit scope. Make copies; keep originals. The IRS occasionally loses what is mailed to them, so retain proof of delivery (USPS certified mail return receipt or Priority Mail tracking).

Action 5: Decide on Professional Help

For correspondence audits on simple issues, self-response is usually fine. For office or field audits, engage a CPA or enrolled agent. Costs in 2026: $100-$300 per hour for CPAs, $75-$200 per hour for enrolled agents. A typical office audit costs $3,500-$4,000 in professional fees but reduces the chance of a finding by 30-50% and often catches errors in the IRS’s own calculations. Tax attorneys are needed for situations involving potential criminal exposure, fraud allegations, or amounts over $100,000.

Actions 6 & 7: Respond Completely, Then Wait

Send your response by certified mail or via the IRS upload portal (for correspondence audits). Include a cover letter listing each item being addressed, citing the relevant section of the tax code or instructions, and attaching the supporting documents in the order requested. Then wait. The IRS typically responds within 30-90 days. Most audits result in either no change ("a no-change audit") or a small adjustment in the IRS’s favor. Less than 5% result in significant additional tax owed. If you receive a proposed adjustment, you have 30 days to agree, file additional documentation, or request a conference with an IRS appeals officer.

Why was I selected for an audit?

Most audits are triggered algorithmically. Common triggers: itemized deductions significantly above average for your income bracket, high charitable contributions relative to income, large home office deduction, undeclared cryptocurrency activity, foreign accounts, or unreported 1099 income that does not match what your client filed. About 1% of taxpayers are randomly selected even without unusual return characteristics.

Will the IRS audit me again next year?

A single audit does not increase your audit risk going forward. Each year is reviewed independently by IRS systems. If the current audit results in significant adjustments, the next 1-2 years may receive heightened review, but most audited taxpayers never see another audit.

What happens if I cannot pay the additional tax owed?

The IRS offers payment plans for any taxpayer who cannot pay in full. Short-term plans (up to 180 days) have no setup fee. Long-term plans (over 180 days, up to 6 years) have a $31-$130 setup fee plus interest. Larger or more complex situations may qualify for an Offer in Compromise — paying less than the full amount owed if you can demonstrate inability to pay.

Can the IRS take my house if I lose an audit?

Theoretically yes through tax liens and levies, but this is extremely rare and happens only after years of non-payment and ignored notices. The IRS strongly prefers payment plans. Asset seizure is generally a last resort for taxpayers with significant unpaid debts who refuse to communicate or pay.