What is the Mail Tax Audit? (Explained)


Formally, a tax audit is also called a “Correspondence audit.” A tax audit is the assessment to verify on the IRS “Internal Revenue Service” tax return to check whether the levies on revenue and the other tax deductions are appropriately imposed.

A tax audit will be considered to conduct auditing when the IRS assigns the tax auditor to examine the related documents and the taxpayer’s economic transaction and whether the taxpayer’s tax return is calculated accurately.

Mail Tax Audit Breakdown:

Mail tax audit is the easiest way for IRS or tax auditor to review the documents required from the taxpayer who is US citizen by sending through the mail without meeting between the IRS’s tax auditor and taxpayer in person.

Wherever the US citizens are located and who are applicable to be taxable to the US government and in the consistently of IRS considered to conduct tax audit on them; IRS will send to notify the taxpayer by mail.

Regarding IRS audits, the possibility of being audited on personal financial information and business financial situation is to ensure that US citizens or taxpayers comply with US tax laws and produce accurately levied tax amounts.

Generally, IRS’s tax auditors are sent to request verification, check, and review the taxpayer‘s supporting documents to compare with their declaration on the tax return.

This process of mail tax audit occurred with a quick examination. It is happening by IRS’s tax auditor to analyze some concerns or where there are suspected fraud or any tax evasion.

The tax auditor review received supporting documents by mail from the taxpayer and will proceed with the auditing with their professional working and transparency.

Related article  Types of Audits: 14 Types of Audits and Level of Assurance (2022)

Example of Mail Tax Audit:

As an example of the Mail tax audit, A US citizen working outside the USA with a monthly contract income with one company amounting to $US 7,000 has claimed that in July 2018, he/she donated $US 2,000 to helping poor children to one NGO.

Then the IRS’s tax auditor may be investigated based on their doubtful judgment on whether there are some suspicious transactions. It could be lead to Money laundering transactions, the NGO that received the donation serving an illegal campaign, and so on.

Then the IRS’s tax auditor may send letters requesting by email or postal mail to the taxpayer’s address to obtain the supporting documents on his/her donation to that NGO, such as a donation certificate as evidence of the taxpayer’s donation.

Furthermore, IRS’s tax auditor may perform an independent examination on that NGO to check that this NGO is receiving the donation to serve the NGO’s purpose.

By providing sufficient supporting documents to the tax auditor, the tax auditor might conclude the auditing that is relevant to the taxpayer on the tax return to the IRS.

Lack of supporting documents will be concluded as not satisfied, and it would lead to doubtful tax auditor to send mail or letter requesting to the taxpayer for further investigation.