Few things generate as much anxiety for taxpayers as receiving a letter from the IRS. Among the most concerning is Letter 2205-A, which signals the beginning of an audit process for individual taxpayers. Unlike a routine notice of balance due or a request for information, this letter marks the IRS’s intent to examine your tax return in greater detail.
While intimidating, Letter 2205-A is not a final determination of wrongdoing. Instead, it is a procedural step that provides you with the opportunity to understand the issues under review and to assert your rights as a taxpayer.
What is Letter 2205-A?
Letter 2205-A serves a single, but significant, function: it informs you that your individual tax return has been selected for audit. At this stage, the IRS has identified your return for further examination—either because of a potential discrepancy, unusual entries, or as part of a random compliance check.
This notice is not punitive. Rather, it is an opening communication that outlines the tax year in question, provides the name and contact information of the revenue agent assigned to your case, and advises that further details will follow.
What Does Letter 2205-A Contain?
Typically, Letter 2205-A includes:
- The tax year(s) under examination.
- The assigned IRS agent’s contact details, including phone, fax, and office address.
- A statement explaining that additional requests for information will be provided, often through Form 4564 (Information Document Request) or Form 886-A.
- References to Publication 1 (“Your Rights as a Taxpayer”) and Notice 609 (Privacy Act Notice), which outline your legal protections during the process.
It is important to note that the letter often does not specify the precise items under review. That information generally comes later, once the IRS requests documentation to support deductions, income, or credits claimed on your return.
Common Reasons for Receiving the Letter
While an audit selection may be random, some frequent triggers include:
- Unusually high deductions or credits compared to your reported income.
- Discrepancies between income reported on your return and third-party information (such as W-2s or 1099s).
- Unreported income detected through IRS matching systems.
- Mathematical inconsistencies or reporting errors.
Understanding that these factors often drive audit selections can help taxpayers anticipate the areas of focus in their case.
Relevance to Taxpayers
For taxpayers, the significance of Letter 2205-A cannot be overstated. It represents the first step in the audit process and sets the tone for everything that follows. Responding promptly and professionally can reduce exposure, protect deductions legitimately claimed, and avoid unnecessary penalties or prolonged disputes.
Ignoring the letter, by contrast, may lead to unfavorable assumptions by the IRS and, ultimately, assessments of additional tax, interest, and penalties.
We Can Help!
Letter 2205-A is not a final judgment, but a call to action. It informs you that the IRS intends to examine your return and provides an opportunity to prepare your defense, assert your rights, and engage constructively with the audit process. The key is not to panic, but to respond strategically.
Handled properly, an audit does not have to be a nightmare. At JH Tax Law, we can help demonstrate compliance and ensure your rights are respected under the tax law. If you’ve received Letter 2205-A, contact our office for a confidential consultation today.