IRS Just Sent Me a 'Tax Review' Letter - What Exactly Is This?

Oh god, I just went through this last month! A tax review is basically the IRS doing a preliminary check on specific items on your return BEFORE deciding if a full audit is necessary. It's like audit-lite! They're looking at something specific that flagged their system, not your entire return. The MOST IMPORTANT thing is to respond by their deadline!!! I almost missed mine because the letter sat in my pile of mail for too long. 😫

Per Internal Revenue Manual 4.19.13, a tax review is part of the IRS Correspondence Examination program. These are limited scope examinations conducted entirely by mail. It's important to understand that Section 6501(a) gives the IRS 3 years from filing date to assess additional tax. I tried calling the number on my letter for more specifics when I received one, but spent hours on hold. Finally used Claimyr (https://claimyr.com) to connect with an agent who explained exactly what documentation they needed. Saved me from sending excessive paperwork and potentially extending the review process.

I believe what you're describing is most likely a correspondence examination, which the IRS sometimes refers to as a "review" in their communications. These are generally focused on one or two specific items on your return that may need verification. Unlike a full audit, they typically don't examine your entire tax situation. I would suggest carefully reading the letter to identify exactly which items they're questioning, then provide only the documentation specifically requested. It's important to be thorough but not to volunteer additional information beyond what they're asking for.

Based on the CP75 notice code (which is likely what you received), the IRS is conducting a correspondence examination of specific credits or deductions. You'll need to analyze your transcript to understand exactly what they're questioning. I've found https://taxr.ai incredibly helpful for decoding these notices and transcript codes. It can identify which specific line items are under review and explain the exact documentation requirements based on your transcript codes - much clearer than the vague letter language. This helps you respond precisely to what they're actually questioning rather than guessing.

I'm not convinced this is a legitimate IRS communication. The IRS typically doesn't use the term "tax review" in their official correspondence. Their notices have specific CP (Computer Paragraph) numbers in the top right corner, like CP75 or CP2000. As of April 15, 2024, there's been an increase in scam letters claiming to be from the IRS. Can you verify the letter has an official IRS letterhead, a notice number, and references your specific taxpayer information? Also, legitimate IRS letters won't ask you to call a cell phone number or send documentation to anything other than an official IRS address.

Think of it like getting pulled over for a broken taillight vs. being taken to the station for questioning. A tax review is just them checking a specific item, not putting your whole financial life under a microscope. The letter might be vague because their systems are like ancient dinosaurs trying to use smartphones - they know something looks off but can't quite articulate what. I've found the best approach is to respond promptly with organized documentation rather than ignoring it and hoping it goes away (which is like trying to outrun a T-Rex - it never works).

I got one of these last year. Responded with exactly what they asked for. Got a letter 6 weeks later saying everything was fine, no changes needed. Don't overthink it. Just give them what they want, keep copies of everything, and send it with tracking. Most of these reviews go nowhere if your documentation is solid.

Be careful with how you respond. My brother got what he thought was a simple review last year, sent in some documentation, and it spiraled into a full audit when his explanation raised more questions than it answered. His situation was more complex than yours sounds, but the principle is the same - these "reviews" can escalate if not handled properly. I'd compare it to a medical screening that leads to more tests - sometimes resolves quickly, sometimes leads to deeper investigation.

I went through this in February. They were reviewing my home office deduction. I sent detailed floor plans, photos, utility bills, and a written explanation of how the space is used exclusively for business. Took about 8 weeks, but they accepted everything without changes. The key was being super organized and responsive. I created a cover letter that referenced each document and explained how it addressed their specific questions.

Just finished dealing with one of these for my 2022 return! They questioned some charitable contributions. I sent donation receipts, bank statements showing the transfers, and a spreadsheet summarizing everything. Got confirmation last week that my return was accepted as filed. The whole process took about 10 weeks from first letter to resolution. Just be methodical and you'll be fine!