A correspondence audit is often the least-threatening of audits.  Essentially, the IRS will send you a letter that highlights one or two issues.  For example, there may be a gap between the income you reported and what is on your W-2.

The IRS will usually make the change to your return and request a higher tax payment (or, there may even be a refund). 

Despite all this, it’s important to double check things.  Keep in mind that errors do happen. 

When responding to a correspondence audit, there are several options:

• Do Nothing:  No doubt, this is a big mistake.  The IRS will make several more contacts and may even take your non-response as an official acceptance.
• Agree:  You sign the document and send in a check.  Or, if you cannot pay,  you can set up some type of installment plan.
• Disagree:  The notice will show the steps you need to take if you do not agree with the IRS position.  Although, in many cases, you must make a written response within 30 days and have supporting evidence.