Correspondence Audit and CP75: What the IRS Is Examining

Yes—CP75 is an examination.

The IRS is not merely asking for a missing attachment. CP75 generally means specified return items are under correspondence examination, and the IRS may hold affected refund components while it reviews eligibility.

Start with the exact issue being examined.

Read CP75 or CP75A and identify each return item the IRS wants substantiated. Common disputes can involve refundable credits, dependents, filing status, income or self-employment facts. Do not send a giant undifferentiated stack of documents.

Build evidence by eligibility element.

If residency matters, organize records that establish residency. If relationship matters, prove relationship. If self-employment income or expenses are questioned, reconstruct the business records relevant to those issues. Create an evidence index that maps each document to the point it proves.

Use readable copies and the approved response channel.

Follow the actual examination correspondence for mailing, fax or Document Upload Tool instructions where offered. Preserve the complete response and proof of submission.

Payment does not substitute for substantiation.

While a refund is being examined, paying money does not prove entitlement to the disputed credit or deduction. The immediate job is evidence.

Do not file an uncoordinated amendment for the same open issue.

If a true return correction is needed, coordinate it with the examination. An open audit owns the disputed issue until the procedure is resolved.

Watch for the next procedural stage.

If examination proposes changes, a Letter 525 or similar 30-day letter can create an administrative Appeals opportunity. If unresolved, a statutory notice of deficiency can later create a Tax Court petition period.

CP75 does not mean fraud.

An examination is a request to substantiate selected items. Do not turn the existence of CP75 into a fraud conclusion.

The PRISM principle

A correspondence audit is won or lost issue by issue. Question → eligibility element → evidence → organized response → proof of submission → next notice.