In the quantum model of the electron, there is non-zero probability of finding the electron within the nucleus. In internal conversion, the wavefunction of an inner shell electron (usually an s electron) penetrates the nucleus. When this happens, the electron may couple to an excited energy state of the nucleus and take the energy of the nuclear transition directly, without an intermediate gamma ray being first produced. The kinetic energy of the emitted electron is equal to the transition energy in the nucleus, minus the binding energy of the electron to the atom.
Most IC electrons come from the K shell (the 1s state), as these two electrons have the highest probability of being within the nucleus. However, the s states in the L, M, and N shells (i.e., the 2s, 3s, and 4s states) are also able to couple to the nuclear fields and cause IC electron ejections from those shells (called L or M or N internal conversion). Ratios of K-shell to other L, M, or N shell internal conversion probabilities for various nuclides have been prepared.
An amount of energy exceeding the atomic binding energy of the s electron must be supplied to that electron in order to eject it from the atom to result in IC; that is to say, internal conversion cannot happen if the decay energy of the nucleus is less than a certain threshold.
Though s electrons are more likely for IC due to their superior nuclear penetration compared to electrons with greater orbital angular momentum, spectral studies show that p electrons (from shells L and higher) are occasionally ejected in the IC process.  There are also a few radionuclides in which the decay energy is not sufficient to convert (eject) a 1s (K shell) electron, and these nuclides, to decay by internal conversion, must decay by ejecting electrons from the L or M or N shells (i.e., by ejecting 2s, 3s, or 4s electrons) as these binding energies are lower.
After the IC electron is emitted, the atom is left with a vacancy in one of its electron shells, usually an inner one. This hole will be filled with an electron from one of the higher shells, which causes another outer electron to fill its place in turn, causing a cascade. Consequently, one or more characteristic X-rays or Auger electrons will be emitted as the remaining electrons in the atom cascade down to fill the vacancies.