Year in and year out, the IRS sends out notices to taxpayers. The notification may be for several reasons, including
- delay in processing a tax return
- changes in a tax return
- request for additional information
- verify an identity
- clarify issues on a tax return or account
vii. alter a tax return
viii. schedule for a bigger or smaller refund etc.
Upon getting a letter from the IRS, you should do the following:
- Keep your cool: It’s understandable to become anxious when you get a letter from the IRS, but try not to worry. Letters are frequently sent to taxpayers by the IRS and third-party collection agents. Once you are familiar with the content of the notice, you can always handle the situation.
- Do not ignore: You should never be tempted to ignore any notification from the IRS. Notices sent by the IRS contain vital information peculiar only to you. Each letter addresses an issue and often includes further instruction on the subject. IRS letters are necessary for your tax returns and accounts, do not ignore them.
- Read the letter’s content carefully: Each notice from the IRS contains a wealth of crucial information. Thus skimming through the notice is never a good idea. Ensure you read through the letter very carefully. Scrutinize every bit of the information and read between the lines.
Compare the information in the letter to your records if it mentions a revised or altered tax return. This way, you won’t be misinformed about your tax situation. Usually, the letters include instructions and guidelines. You should equally take time to go through and follow the instructions appropriately.
- Be timely with your response: You must be prompt, especially if the notice instructs you to respond or make a payment. Being swift in taking action can minimize penalty charges and additional interests. In case you are required to make a payment, you should pay as much as you can, even if you can’t pay the total amount.
If you disagree with any aspect of the letter you got from the IRS, you can raise a dispute through any of the IRS channels. You can mail a letter to show and explain the dispute. You should include your supporting documents when responding to a disputed notice.
- Keep copies of your notices: You should have a record of all the letters you get from the IRS. You can never tell when you will need them. You can make copies of the letters and keep them with your other tax records.
- Contact the IRS: The regular way to reach the IRS is through the mail. However, you might need to contact them by placing a call through the designated IRS on the top right-hand corner of the notice or letter. Upon writing, you should wait for at least 30 days before expecting a response. It is also important to note that the IRS never initiates contact with a taxpayer via social media or text messages. The first contact from the IRS is usually via mail.
Need more help? You should find an Enrolled Agent in your locality. You might wonder how a tax preparer near me can help me. Indeed, some notices are simple, and you might need no help. Still, with notices relating to an audit or offering an appeal to the IRS, you should seek the help of an Enrolled Agent.
COMMON IRS NOTICE
- CP59 Notice:
This notice informs you that no record was found that suggests you filed your return for the stated year. You should carefully read the notification. File your individual tax return as soon as you can, or get in touch with the IRS and let them know why you don’t need to. Use the response form that is in the notice letter.
- CP516 Notice:
This informs you that your tax return is overdue. File your tax returns right away. Fill out Form 15103, Form 1040 Return Delinquency, and attach with it a notice explaining your reason for filing late or why you don’t have to file or if you’ve filed already.
- CP90 Notice:
This final notice informs the taxpayer of the IRS’s intent to levy some assets if no payment is made. Pay the amount you owe before the due date specified on the notice. Just in case you cannot pay the full amount, you can get in touch with the IRS for a payment plan which permits you to pay by installment.
- 2802C notice:
This informs you that your withholding cannot cover the amount you owe in taxes. According to the IRS, you should use the Tax Withholding Estimator to determine your correct withholding amount. Fill out the W-4 provided and give it to your employer.
- CP259 Notice:
This informs you that you are required to file your business tax return for a tax period indicated on the notice, but you haven’t. File your business return with all required schedules immediately. If you feel you are not supposed to file, fill out the Response form that is included with your notice and mail it to the IRS.
The IRS sends out letters to taxpayers for a myriad of reasons. Should you get a letter from them, you should read the letter very carefully and respond as soon as possible.