The IRS notifies taxpayers via letter if they are being audited. Here are some of the titles of those letters and what they mean:
- Notice that We changed Your Account—The IRS made a change to your tax return and unless you disagree, no response is needed.
- Notice of Audit and Examination Scheduled—You are being audited by the IRS and it is in your best interest to have a consultation with an IRS audit representative.
- Notice of Tax Amount Changed—If you don’t show up to your audit appointment you lose by having all of your deductions being disallowed that the IRS was auditing.
- Notice of Examination Report and Change to your Tax—This is the results of the audit and the amount owed. If you disagree with the auditor you have the right to appeal.
- Notice of Change to Tax Return Due to Recent Audit—Usually this letter informs the taxpayer of additional interest and penalties added as a result of additional tax owed.