87 irs audit letter sample 2019 understanding your IRS notice

Receiving a letter from the IRS can be a bit nerve-wracking, but understanding what it means is the first step to handling it effectively. This article will walk you through what an irs audit letter sample 2019 might look like and what you should do. Knowing the content and purpose of these letters can save you a lot of stress and potential problems down the road.

Decoding Your IRS Audit Letter Sample 2019

An irs audit letter sample 2019 is essentially a notification from the Internal Revenue Service that they are reviewing your tax return. It's not automatically an accusation of wrongdoing, but rather a request for more information or clarification about specific items on your return. It is incredibly important to respond to these letters promptly and accurately. Ignoring them can lead to penalties and a more serious examination of your taxes.

The IRS sends these letters for various reasons, and the content will depend on what they need to verify. Here are some common elements you might find:

• Your identifying information (name, address, Social Security Number).
• The tax year in question.
• The specific items or deductions being questioned.
• A deadline for your response.
• Instructions on how to respond and what documents to provide.

Here's a quick look at the types of information they might ask for:

For example, if you claimed a large charitable contribution, the IRS might send a letter asking for proof of that donation. Or, if there's a discrepancy between reported income on your return and what was reported by employers or financial institutions, they will likely send a notice to clarify.

IRS Audit Letter Sample 2019 for Income Discrepancies

1. Letter stating a mismatch between your reported wages and W-2 data.
2. Notice requesting confirmation of reported freelance income from a 1099-NEC.
3. Inquiry about undeclared interest or dividend income.
4. Request for documentation supporting self-employment income.
5. Audit notification for unusually high capital gains not matching brokerage statements.
6. Notice regarding discrepancies in unemployment compensation reported.
7. Inquiry about income from rental properties.
8. Request for proof of alimony received.
9. Audit letter concerning potential underreporting of foreign income.
10. Notice about discrepancies in Social Security benefits received.
11. Inquiry about income from cryptocurrency sales.
12. Request for documentation on gaming winnings.
13. Audit notification for unreported pensions or annuities.
14. Notice regarding discrepancies in business income reported by a partnership.
15. Inquiry about income from trusts or estates.
16. Request for proof of royalty payments received.
17. Audit letter concerning potential underreporting of worker's compensation.
18. Notice about discrepancies in jury duty pay.
19. Inquiry about income from bartering.
20. Request for documentation supporting forgiven debt reported as income.

IRS Audit Letter Sample 2019 for Claimed Deductions

1. Letter requesting receipts for medical expenses.
2. Notice asking for documentation of charitable contributions.
3. Inquiry about business expense deductions claimed.
4. Request for proof of student loan interest deduction.
5. Audit notification for unusually large home mortgage interest deduction.
6. Notice regarding mileage deduction for business use of a car.
7. Inquiry about educator expense deductions.
8. Request for documentation of IRA contributions.
9. Audit letter concerning claimed itemized deductions.
10. Notice about discrepancies in state and local tax (SALT) deductions.
11. Inquiry about unreimbursed employee expenses.
12. Request for proof of dependent care expenses.
13. Audit notification for claimed casualty or theft losses.
14. Notice regarding discrepancies in self-employment tax deductions.
15. Inquiry about qualified business income (QBI) deduction.
16. Request for documentation of moving expenses.
17. Audit letter concerning claimed moving expenses for military personnel.
18. Notice about discrepancies in adoption expenses.
19. Inquiry about the Earned Income Tax Credit (EITC) claimed.
20. Request for documentation supporting the deduction for health savings account (HSA) contributions.

IRS Audit Letter Sample 2019 for Record-Keeping Issues

1. Letter requesting bank statements to verify income.
2. Notice asking for canceled checks to support expenses.
3. Inquiry about invoices for business purchases.
4. Request for receipts for travel expenses.
5. Audit notification for lack of documentation for reported income.
6. Notice regarding discrepancies in inventory records.
7. Inquiry about personal financial statements.
8. Request for proof of asset purchases or sales.
9. Audit letter concerning the absence of a ledger for transactions.
10. Notice about poor record-keeping for a small business.
11. Inquiry about digital records versus paper records.
12. Request for proof of payment for services rendered.
13. Audit notification for inconsistent record-keeping practices.
14. Notice regarding discrepancies in payroll records.
15. Inquiry about the proper retention period for tax documents.
16. Request for proof of expenses related to home office deduction.
17. Audit letter concerning the lack of traceable business expenses.
18. Notice about discrepancies in the reconciliation of bank accounts.
19. Inquiry about the organization of financial documents.
20. Request for documentation supporting the cost basis of assets.

IRS Audit Letter Sample 2019 for Audit Selection

1. Letter notifying you of a correspondence audit.
2. Notice informing you of a mail audit.
3. Inquiry about a document examination audit.
4. Request for specific tax forms for review.
5. Audit notification due to statistical scoring.
6. Notice of a random audit selection.
7. Inquiry about returns flagged by IRS computer systems.
8. Request for a comparison of your return to others in your industry.
9. Audit letter concerning changes made to prior year returns.
10. Notice of an audit triggered by a tip from an informant.
11. Inquiry about returns claiming significant losses.
12. Request for documentation related to a large cash transaction.
13. Audit notification based on specific IRS examination programs.
14. Notice of an audit related to a business entity.
15. Inquiry about international tax issues.
16. Request for information on foreign bank accounts.
17. Audit letter concerning potential tax fraud.
18. Notice of an audit involving multiple tax years.
19. Inquiry about a return filed by a tax preparer who is under scrutiny.
20. Request for documentation to verify eligibility for certain tax credits.

IRS Audit Letter Sample 2019 for Penalty and Interest Assessments

1. Letter notifying you of an underpayment penalty.
2. Notice regarding a failure-to-file penalty.
3. Inquiry about a failure-to-pay penalty.
4. Request for information to determine the cause of a penalty.
5. Audit notification of assessed interest on unpaid taxes.
6. Notice of accuracy-related penalty.
7. Inquiry about the intentional disregard of tax laws.
8. Request for a penalty abatement request.
9. Audit letter concerning civil fraud penalty.
10. Notice of estimated tax penalty.
11. Inquiry about penalties related to retirement plan distributions.
12. Request for documentation supporting reasonable cause for penalty relief.
13. Audit notification of penalties related to abusive tax shelters.
14. Notice regarding penalties for failing to report foreign financial assets.
15. Inquiry about penalties for tax evasion.
16. Request for information to calculate accrued interest.
17. Audit letter concerning penalties for promoting an abusive tax shelter.
18. Notice about discrepancies in reported tax payments leading to penalties.
19. Inquiry about penalties for failing to furnish payee statements.
20. Request for documentation to dispute assessed interest charges.

Receiving an irs audit letter sample 2019 doesn't have to be the end of the world. By understanding what the letter is asking for, gathering the necessary documentation, and responding promptly and honestly, you can navigate the process smoothly. Remember, the IRS is looking for accuracy, and with the right approach, you can resolve any issues and get back to your normal financial life.