Solved
Does this mean an audit? Does this affect my federal return?
It does not necessarily mean anything specific. It could be nothing more than the fact that your employer didn't send them a copy of the W-2 or that the copy they sent got garbled somehow. If you're concerned, there should be a telephone number on the letter that you could call and ask. Don't hesitate to ask if you're worried, they won't think anything suspicious if you call them.
I found this on the internet:"Most Frequently Used Phone Numbers: Individual Income Tax: (317) 232-2240"
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