What to Do When You Receive a Letter from the IRS
Receiving a letter from the IRS can be a stressful experience, but it’s important to remember that not all letters are bad news. The IRS sends out various types of correspondence for different reasons. Understanding the type of letter you’ve received and knowing how to respond can help you manage the situation effectively. Here’s what you need to know.
Types of Letters You Can Receive from the IRS
The IRS issues different types of letters and notices to taxpayers, each serving a specific purpose. Here are some common types of correspondence you might receive:
CP2000 Notice: This notice informs you of a discrepancy between the income, payments, credits, or deductions reported on your tax return and the information the IRS has on file.
CP14 Notice: This is a notice of unpaid taxes. It indicates that you have a balance due on your tax account.
CP3219A Notice: This notice is sent when the IRS has proposed changes to your tax return due to unreported income or incorrect deductions.
Letter 4883C: The IRS sends this letter to verify your identity and confirm that you filed a tax return.
Letter 5071C: Similar to Letter 4883C, this letter requests verification of your identity to protect against identity theft.
Steps to Take When You Receive an IRS Letter
Read the Letter Carefully: The first step is to read the letter thoroughly. The IRS letter will provide specific instructions and information about why it was sent and what action you need to take.
Verify the Information: Check the details in the letter against your records to ensure there are no errors. If you find any discrepancies, gather supporting documents to dispute the claim.
Respond Promptly: Follow the instructions in the letter and respond within the given timeframe. Timely responses can help avoid additional penalties and interest.
Seek Professional Help: If you’re unsure how to respond or if the letter is complex, consider seeking help from a tax professional. They can provide guidance and represent you in dealings with the IRS.
Resources to Help You
If you need assistance understanding or responding to an IRS letter, there are resources available to help you:
Taxpayer Advocate Service: This is an independent organization within the IRS that helps taxpayers resolve issues with the IRS. They can provide guidance and support if you’re facing financial hardship or if your tax issue is not being resolved through normal IRS channels. Visit their website for more information: [Taxpayer Advocate Service]
Call to Action
Receiving a letter from the IRS doesn’t have to be a daunting experience. By understanding the type of letter you’ve received and knowing the steps to take, you can manage the situation effectively. If you need help navigating IRS correspondence, our team of tax professionals is here to assist you. Contact us today for personalized support and guidance.
