[Date]
[Examiner name, title]
Internal Revenue Service
[Address]
Re: Response to Information Document Request
Taxpayer: [Name] TIN: [SSN or EIN]
Tax form and period(s): [Form and periods under examination]
IDR number: [IDR number] dated [IDR date]
Issue stated on IDR: [Issue]
Response due date: [Due date, or extended due date of [date]]
Dear [Examiner name]:
Enclosed is the taxpayer's response to the Information Document Request identified above. The index below lists each numbered item in the IDR, the response, and the documents provided. Documents are numbered [Bates prefix and range, e.g. ABC-000001 to ABC-000412].
| IDR item | Request (as written) | Response | Documents | Status |
|---|---|---|---|---|
| [1] | [Quote item 1] | [Short narrative answer] | [ABC-000001 to ABC-000150] | [Complete] |
| [2] | [Quote item 2] | [Explain what is provided and what is outstanding] | [ABC-000151 to ABC-000300] | [Partial: balance by [date]] |
| [3] | [Quote item 3] | [Explain why not provided, e.g. records do not exist; held by third party; request clarification] | [None] | [Not available / Clarification requested] |
Outstanding items. [For each partial or open item: what remains, why, and the date it will be provided.]
Clarifications. [For any item read narrowly or interpreted: state the interpretation used, e.g. 'We read item 4 to cover the 2024 tax year only, consistent with the issue stated on the IDR.']
Please confirm whether this response satisfies the IDR, and let me know of any item you consider incomplete, by [the review date stated on the IDR / a requested date]. Please direct questions to me at [Phone] or [Email].
Sincerely,
[Representative name, credential]
[Firm]
CAF [CAF number]
Enclosures: [Number] documents, [delivery method and media, e.g. encrypted drive, upload confirmation]
When to use it
Use this cover letter whenever you deliver documents in response to a Form 4564, in a field exam, an office exam or an LB&I exam. The background on IDRs, including how they fit into the exam plan, is at information document requests; this page is the response format. In correspondence exams the IRS usually asks for documents by letter rather than Form 4564; see correspondence examinations.
What the IRM says an IDR should look like
Knowing the IRS’s own standard tells you when to ask for a narrower request. IRM 4.10.2.10.1, for SB/SE and general exams, says: “Requests should be specific and should avoid requesting more information than is essential to resolve the issues identified.” A Form 4564 must sufficiently specify the records and include the activity and time period, and “The Form 4564 must always include a date for submission of the requested information or documents.” Examiners are told that pro-forma IDRs must be modified to the return. They are also told “It is advisable to include a statement on the Form 4564 indicating that the examiner will probably request additional records as the examination progresses,” so a closed IDR is not the end of document requests.
For LB&I, Exhibit 4.46.4-1 sets the requirements: discuss the issue and why the information is needed, state the issue on the IDR (except the opening request for basic books and records), and “Only one issue should be addressed on each IDR.” The examiner should “Provide a draft of the IDR and discuss its contents with the taxpayer,” agree on a reasonable response date if possible, and note on the IDR the date by which the response will be reviewed. Those steps matter because IRM 4.46.4.7.3 says IDRs must comply with these procedures before the IRS can issue a summons based on the IDR. See LB&I examinations.
What each part of the response does
Reference block. The IDR number, date, stated issue and due date tie the response to one request. LB&I teams keep an IDR log, and a response that cites the number posts against the right entry.
Index. Quoting each item and pairing it with a document range lets the examiner check completeness without reading everything. A status column (complete, partial with a date, not available) is the record you will rely on if the examiner later says the response was incomplete.
Outstanding items. An honest partial response with a date is better than silence. In LB&I, if a response is incomplete, the examiner is to discuss the reasons and decide within 5 business days whether to extend.
Clarifications. If you read an item narrowly, say so in the letter. Interpretation disputes are easier to resolve before the review date than after.
Request to confirm. In LB&I, “If the IDR is considered complete upon review, the examiner or specialist must notify the taxpayer that the IDR is complete and closed.” Asking for that confirmation by the review date stated on the IDR keeps the process on schedule.
LB&I: extensions and enforcement
| Stage | What the IRM says |
|---|---|
| Extension | Before enforcement starts, an examiner or specialist can grant one extension of up to 15 business days per IDR, after discussing a missed or incomplete response within 5 business days |
| Delinquency notice (Letter 5077) | Issued within 10 days of enforcement starting, signed by the team manager; response date generally no more than 10 business days |
| Pre-summons letter (Letter 5078) | Signed by a territory manager, addressed to a higher level of taxpayer management; response date generally 10 business days |
| Summons | Prepared with Counsel under IRM 25.5 |
Exhibit 4.46.4-2 describes these as three graduated steps and says the process is mandatory with limited exceptions (listed transactions, transactions of interest, and micro captive and syndicated conservation easement cases follow the regular summons procedures). An extension request, if you need one, should go in before the due date with the reason and a realistic date. For summons rules generally, see IRS summons in exams.
Two other IRM points shape what you send. Under IRM 4.10.2.10.2, the examiner’s authority comes from IRC 7602, and “Accountant’s workpapers used in the audit of tax records or in preparation of a tax return are not the property of the taxpayer and are not privileged information”, although the IRS applies separate policies to audit, tax accrual and tax reconciliation workpapers (IRM 4.10.20). And if you mark documents “FRE 408” or for settlement purposes only, IRM 4.46.4.7.1 directs LB&I examiners to IRM 4.46.5.3 on resolution versus settlement.
Mistakes
- Producing a box of documents with no index, which invites a “response incomplete” finding.
- Answering a broad pro-forma IDR in full instead of asking the examiner to tailor it, as the IRM expects.
- Letting the due date pass without a partial response or an extension request.
- Sending originals; send copies and keep an exact duplicate set with the same numbering.
- Volunteering narrative explanations that go beyond the item asked; consider whether the answer belongs in a separate written position instead. See taxpayer interviews and rights.
Questions practitioners ask
Does an IDR have legal force?
An IDR is a request. The enforcement tool behind it is the summons under IRC 7602; in LB&I, the IDR must meet the Exhibit 4.46.4-1 requirements before a summons based on it can be issued and enforced.
Can I ask the examiner to narrow an IDR?
Yes. The IRM tells examiners to request only what is essential to the issues and, in LB&I, to discuss a draft IDR with the taxpayer before issuing it.
What if records do not exist?
Say so in the index and explain what was searched. If the records are with a third party, say who holds them; the IRM notes that refusing access leads to third-party inquiries. See third-party contacts.
How long does an LB&I extension last?
Up to 15 business days, and an examiner may grant one extension per IDR before the enforcement process begins.
Should the response go to the examiner or the case manager?
To the person who issued the IDR, as named on the Form 4564, with copies to anyone the examiner asks to include.