What to do if you Receive an IRS Notice


The IRS sends out millions of letters and notices to taxpayers each year. However, that does not mean that you need to worry. There are number of reasons the IRS sends out these notices to taxpayers. The notice may request payment of taxes, notify you of a change to your account or request additional information.


Just in case one shows up in your mail box, here is some information you should know.

  • First of all, it is important not to panic. Many of these letters are generated by the computer and have not been reviewed by a live person for reasonableness. These are usually called “CP 2000” Notices and are generated because they have received information for income that they cannot match up to your return (such as a 1099). Many times there is a legitimate reason for any questions that they have and it simply needs to be explained to them.
  • Each notice offers specific instructions on what you need to do to satisfy the inquiry. Please make sure you read these instructions and follow them as this will make sure your issue is resolved in the most efficient manner possible.
  • If you receive a notice regarding a correction to your previously filed tax return, you should review the correspondence and compare it with the information on your return. If you agree with the correction to your return, then there is no need to reply with an explanation and you should just make any payment that is due (if applicable).
  • Once you have reviewed the notice, if you do not agree with the correction(s) the IRS made then you should respond to the IRS with a letter. You should include a clear explanation as to why you disagree with any items, and include any documents that support your explanation. The response should be mailed back to the IRS address listed on the notice. Allow at least 30 days for a response. It’s important to keep copies of any correspondence with your records.
  • Most correspondence can be handled without calling or visiting an IRS office. However, if you have questions, you can call the telephone number on the notice. You should have a copy of your tax return and any correspondence that you have already sent to the IRS on hand when you make the call.
 
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