Got an IRS Letter? What an Audit Actually Looks Like in 2026

Don't panic — but don't ignore it

The vast majority of "audits" today aren't the in-person, sit-across-from-an-agent type people picture. They're correspondence audits handled entirely by mail, and most are about specific line items — not your whole return.

But every IRS letter has a deadline, and ignoring it is the worst thing you can do. Penalties grow, deadlines pass, and what could have been a $0 resolution becomes a real bill.

The three flavors of audit

1. Correspondence audit

A letter (usually CP2000, CP11, or 4549) asking for documentation on specific items. Most resolve with a faxed response. About 75% of all IRS audits are this type.

2. Office audit

You bring documents to an IRS office. Less common, more involved, often related to itemized deductions or business expenses.

3. Field audit

An agent visits your home or business. Rare for individuals, more common for businesses with complex returns.

What triggers an audit

The IRS doesn't share its full algorithm, but common triggers include:

• Large deductions disproportionate to income
• Schedule C losses several years in a row
• Cash-heavy businesses
• Large charitable contributions without documentation
• Mismatches between 1099s/W-2s and what you reported
• Earned Income Credit claims (heavily reviewed)
• Crypto transactions reported inconsistently

"Audits aren't about finding fraud. They're about asking you to prove what you wrote down. If you can document it, the audit ends."

What to do the day you get the letter

1. Read the entire notice. Note the form number, the year(s) at issue, the specific items, and the response deadline.
2. Don't call the IRS yourself. Anything you say is on the record. Once a tax professional has authorization (Form 2848), the IRS will deal with us instead of you.
3. Don't send your whole return again. Only what's asked for.
4. Don't agree to anything verbally. All adjustments should be in writing.

What we do as your representative

Premier Tax handles audit response end-to-end:

• File Form 2848 so the IRS contacts us, not you
• Request the IRS's full file on your case
• Build the documentation packet — only what's requested, organized and indexed
• Negotiate adjustments where the IRS has a point, push back where they don't
• Resolve to either no change, an agreed adjustment, or appeal

What it usually costs

Most correspondence audits resolve in one to three rounds of correspondence. Field audits take longer. Either way, the cost of professional representation is almost always less than the proposed adjustment we're able to reduce or eliminate.

If you've already replied and it didn't go well

We can still take over. Reopening, appealing, or filing an Offer in Compromise are all options depending on where the case sits. Bring us the letters and we'll build a path forward.