Key Takeaways IRS Letter 525 is a formal notification that your tax return has been selected for examination (audit) by the IRS The letter identifies the specific items on your return that the IRS wants to examine and the documentation you need to provide You have the right to professional representation — an enrolled agent, CPA, or tax attorney can handle the entire audit on your behalf through IRS audit defense services Responding properly to Letter 525 is critical — your response sets the tone for the entire audit and can determine the outcome If the audit results in a proposed deficiency, you have the right to appeal before the IRS assesses additional tax What Is IRS Letter 525? IRS Letter 525 is the IRS's formal notification that your tax return has been selected for examination. Unlike a CP2000 notice , which is a computer-generated proposed adjustment based on information matching, Letter 525 indicates that an IRS revenue agent or tax compliance officer has been assigned to review your return and verify the accuracy of specific items you reported. This represents a much higher level of IRS scrutiny than an automated notice. Receiving Letter 525 means that the IRS has questions about your tax return that go beyond what automated systems can resolve. A human examiner will be reviewing your documentation, asking questions, and making determinations about whether the items on your return were reported correctly. The examiner has broad authority to request documentation, ask questions, and propose adjustments to your tax. This letter is significant because it marks the beginning of a formal audit process. How you respond — and whether you respond with professional representation — can have a major impact on the outcome of the examination and the amount of additional tax, if any, that the IRS...