IRS Audit Response Letter

IRS AUDIT RESPONSE LETTER

EXAMINATION RESPONSE AND DOCUMENTATION SUBMISSION

TAXPAYER INFORMATION

Taxpayer Name: [FULL LEGAL NAME]

Social Security Number / EIN: [SSN/EIN]

Current Address:
[STREET ADDRESS]
[CITY, STATE ZIP]

Daytime Telephone: [PHONE NUMBER]

Email Address: [EMAIL]

IRS Letter/Notice Number: [LETTER NUMBER]

IRS Letter Date: [DATE]

Response Due Date: [DUE DATE]

Examiner Name: [EXAMINER NAME]

Examiner ID Number: [ID NUMBER]

Examiner Contact Information: [PHONE/ADDRESS]

COVER LETTER

[DATE]

[EXAMINER NAME]
Internal Revenue Service
[ADDRESS FROM IRS LETTER]

Via Certified Mail No.: [TRACKING NUMBER]

Re: Response to Examination - [LETTER TYPE]
Taxpayer: [TAXPAYER NAME]
Social Security Number/EIN: [NUMBER]
Tax Year(s) Under Examination: [YEAR(S)]
Tax Form: [FORM NUMBER (e.g., 1040, 1120, 1065)]
IRS Letter Number: [LETTER NUMBER]
IRS Letter Date: [DATE]

Dear [EXAMINER NAME/Examining Officer]:

Thank you for your letter dated [DATE] regarding the examination of my [FEDERAL INCOME TAX RETURN / EMPLOYMENT TAX RETURN / etc.] for the tax year(s) [YEAR(S)].

Enclosed please find documentation and information responsive to the items identified in your examination letter. I believe this information supports the positions taken on my original return.

SECTION 1: ITEMS UNDER EXAMINATION

Issues Identified by IRS:

Taxpayer's Position:

☐ I agree with all proposed changes
☐ I agree with some proposed changes (see Section 2)
☐ I disagree with all proposed changes (see Section 3)
☐ I am providing additional documentation for IRS review

SECTION 2: ITEMS AGREED TO

If you agree with any of the IRS proposed changes:

Total Additional Tax Agreed: $[AMOUNT]

SECTION 3: ITEMS DISPUTED

Item 1: [ITEM DESCRIPTION]

Amount Reported on Return: $[AMOUNT]
IRS Proposed Adjustment: $[AMOUNT]
Taxpayer's Correct Amount: $[AMOUNT]

Statement of Facts:
[PROVIDE A DETAILED FACTUAL EXPLANATION OF THIS ITEM. INCLUDE RELEVANT DATES, TRANSACTIONS, AND CIRCUMSTANCES.]

Legal Basis for Position:
[CITE APPLICABLE IRC SECTIONS, TREASURY REGULATIONS, REVENUE RULINGS, OR CASE LAW SUPPORTING YOUR POSITION]

Documentation Provided:
[LIST THE SPECIFIC DOCUMENTS ATTACHED THAT SUPPORT THIS ITEM]

Item 2: [ITEM DESCRIPTION]

Amount Reported on Return: $[AMOUNT]
IRS Proposed Adjustment: $[AMOUNT]
Taxpayer's Correct Amount: $[AMOUNT]

Statement of Facts:
[PROVIDE A DETAILED FACTUAL EXPLANATION]

Legal Basis for Position:
[CITE APPLICABLE AUTHORITIES]

Documentation Provided:
[LIST SUPPORTING DOCUMENTS]

[REPEAT FOR ADDITIONAL ITEMS AS NECESSARY]

SECTION 4: DOCUMENTATION INDEX

The following documents are enclosed in support of this response:

Income Documentation:
☐ W-2 Forms
☐ 1099 Forms (specify types: [1099-MISC, 1099-NEC, 1099-K, etc.])
☐ Bank statements showing deposits
☐ Business income records
☐ Cash register tapes
☐ Sales invoices
☐ Other: [DESCRIBE]

Deduction/Expense Documentation:
☐ Receipts for claimed deductions
☐ Canceled checks or bank statements
☐ Credit card statements
☐ Invoices marked paid
☐ Mileage logs
☐ Travel expense records
☐ Home office documentation
☐ Other: [DESCRIBE]

Business Records:
☐ Profit and loss statements
☐ General ledger
☐ Chart of accounts
☐ Depreciation schedules
☐ Asset purchase records
☐ Inventory records
☐ Other: [DESCRIBE]

Supporting Schedules:
☐ Itemized deduction worksheets
☐ Basis calculations
☐ Capital gains/loss schedules
☐ Rental property schedules
☐ Other: [DESCRIBE]

Third-Party Documentation:
☐ Letters from employers
☐ Statements from financial institutions
☐ Medical provider statements
☐ Charitable organization acknowledgments
☐ Other: [DESCRIBE]

SECTION 5: DOCUMENT SUBMISSION FORMAT

Documents are being submitted via:

☐ Mail - Enclosed with this letter
☐ IRS Document Upload Tool (DUT) - www.irs.gov/examreply

• Confirmation Number: [NUMBER]
• Upload Date: [DATE]
  ☐ Fax to: [FAX NUMBER]
  ☐ Delivered In-Person at examination appointment

Note on Copies:
All documents provided are copies. Taxpayer has retained original documents.

SECTION 6: REQUEST FOR ADDITIONAL TIME (IF NEEDED)

☐ I am requesting an extension of time to respond

Reason for Extension Request:
[EXPLAIN WHY ADDITIONAL TIME IS NEEDED]

Proposed New Response Date: [DATE]

Items Requiring Additional Time:
[LIST WHICH ITEMS OR DOCUMENTS NEED MORE TIME]

SECTION 7: REQUEST FOR EXAMINATION CONFERENCE

☐ I request a conference to discuss the examination findings

Preferred Conference Format:
☐ In-person at IRS office
☐ Telephone conference
☐ Video conference

Preferred Date/Time: [DATE/TIME]

Alternate Date/Time: [DATE/TIME]

Topics to Discuss:
[LIST KEY ITEMS YOU WISH TO DISCUSS]

SECTION 8: TAXPAYER REPRESENTATIONS

The taxpayer represents that:

☐ All documents provided are true and accurate copies of original records

☐ The taxpayer has provided all relevant documents in the taxpayer's possession, custody, or control related to the items under examination

☐ The taxpayer has made reasonable efforts to obtain any documents from third parties as requested

☐ If additional documents are located, they will be promptly provided to the examiner

SECTION 9: PENALTY CONSIDERATIONS

If the examination results in additional tax, the taxpayer requests consideration of the following:

☐ Reasonable Cause - The taxpayer exercised ordinary business care and prudence

☐ Substantial Authority - The taxpayer's position was supported by substantial authority

☐ Reasonable Basis with Adequate Disclosure - The position was properly disclosed on Form 8275

☐ Reliance on Professional Advice - The taxpayer relied on the advice of a qualified tax professional

Supporting Statement:
[EXPLAIN THE BASIS FOR PENALTY PROTECTION]

SECTION 10: ENCLOSURES CHECKLIST

☐ Copy of IRS examination letter
☐ Form 12661, Disputed Issue Verification (if applicable)
☐ Supporting documentation (see Section 4)
☐ Index of all documents provided
☐ Spreadsheets or schedules supporting positions
☐ Copies of relevant portions of tax returns
☐ Form 2848, Power of Attorney (if represented)
☐ Other: [DESCRIBE]

SECTION 11: TAXPAYER CERTIFICATION

Under penalties of perjury, I declare that the statements made in this response, including all accompanying schedules, documents, and attachments, are true, correct, and complete to the best of my knowledge and belief.

Taxpayer Signature: ___________________________________

Printed Name: [TAXPAYER NAME]

Date: [DATE]

SECTION 12: REPRESENTATIVE INFORMATION (IF APPLICABLE)

Representative Name: [NAME]

Credentials: ☐ Attorney ☐ CPA ☐ Enrolled Agent

Firm Name: [FIRM]

Address:
[ADDRESS]

Telephone: [PHONE]

Fax: [FAX]

Email: [EMAIL]

CAF Number: [CAF NUMBER]

PTIN: [PTIN]

☐ Form 2848, Power of Attorney and Declaration of Representative is attached
☐ Representative is authorized to receive and inspect confidential tax information
☐ Representative is authorized to perform acts on behalf of the taxpayer

Representative Signature: ___________________________________

Date: [DATE]

MAILING/SUBMISSION INSTRUCTIONS

Option 1: Mail Response

Mail to the address shown on your IRS examination letter:

[EXAMINER NAME]
Internal Revenue Service
[ADDRESS FROM LETTER]

Use Certified Mail with Return Receipt Requested

Option 2: IRS Document Upload Tool

Website: www.irs.gov/examreply

• Secure and recommended method
• Allows immediate confirmation of receipt
• Available 24/7

Option 3: Fax

Fax to the number on your examination letter: [FAX NUMBER]

• Keep confirmation page for your records

RESPONSE DEADLINES

Important: You must respond by the date shown on the IRS examination letter, typically 30 days from the letter date.

Failure to respond may result in:

• The IRS disallowing disputed items
• Issuance of a Notice of Deficiency (90-day letter)
• Loss of certain appeal rights

If you need more time:

• Contact the examiner before the deadline
• Explain why you need additional time
• Request a specific extension period

NEXT STEPS AFTER RESPONSE

1. IRS Review: The examiner will review your documentation

2. Possible Outcomes:
   - No change to your return
   - Partial agreement on some items
   - Full agreement on IRS proposed changes
   - Continued disagreement

3. If Agreement: You will receive closing documents to sign

4. If Disagreement: You may receive:
   - Additional information requests
   - A 30-day letter with proposed changes
   - An opportunity to meet with the examiner's manager
   - Information about appeal rights

APPEAL RIGHTS

If you cannot reach agreement with the examiner:

1. Manager Conference: Request a meeting with the examiner's supervisor

2. IRS Appeals: File a protest with the IRS Independent Office of Appeals

3. Tax Court: If you receive a Notice of Deficiency, you have 90 days to petition the U.S. Tax Court

This template is provided for informational purposes and should be reviewed by qualified tax counsel before submission to the IRS.