In a recent report to Congress, the National Taxpayer Advocate addressed several of her service’s FY 2024 priorities. One of them is to improve correspondence audit processes. Most IRS audits are conducted by correspondence (through the mail), but taxpayers often have trouble navigating the process. They may not, for example, understand the notices they receive, what they need to provide to substantiate their return positions and when. In 2022, correspondence audits resulted in a 41.6% no-response rate, a 20.8% agreement rate and a 20.4% default rate. The Taxpayer Advocate Service intends to work with the IRS to improve these results.
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