Understanding Your IRS Notice or Letter

Each year the IRS sends out millions of letters and notices to taxpayers. Many of these IRS notice letters are innocuous, while some can indicate a more complicated problem with your tax records like perceived income tax fraud. Receiving these letters can create anxiety and confusion regardless of the content of the notice. If you receive a letter or notification from the IRS, here’s what you should do.

Don’t Panic and Follow the Instructions

There are many reasons why you may receive an IRS notice letter. Some of the most common notifications are due to a specific issue or concern. These reasons include:

•        A balance is due.
•        The refund amount is larger or smaller than as submitted.
•        The IRS has a question about your return.
•        Identity verification is required.
•        Additional information is needed to process the return.
•        Notification of a delay in payment is needed.
•        The return was changed by the IRS.

The notice will include specifics about the reason for the letter, and it is important that you read and understand what the notification means. Compare your return with the information provided in the letter.

Respond to the IRS Notice Letter Timely

The notice will provide you with details on how to respond to the letter. In some instances, a response might not be necessary and the letter is simply a notification. Each letter should include contact information. Phone numbers should be clearly listed for those handling your case, and you should be able to reach out to them for assistance.

If the IRS notice letter specifies that it is looking to confirm or request additional information, your prompt attention will help resolve problems in the future.

Some letters may specify that responses are required to be submitted by a certain time. Be aware of the requirements in your notifications, as delaying a response could mean that you incur additional penalty fees or your right to appeal may not be preserved.

If you disagree with the adjustments made by the IRS, you will need to appeal in writing. Provide specifics and include any necessary documentation or information that may be helpful to the IRS in resolving the issue. Your letter should include a tear off portion on the bottom of the letter to include with your response. Allow 30 days to receive a response from the IRS about your return.

Keep a Copy of the IRS Notice Letter

It is important to retain copies of all of your tax paperwork as well as any correspondence with the IRS in regards to your return. Any notices or letters you receive should be kept with your refund so they are easy to locate if you need them at a later date.

Seek Assistance When Necessary

Though many notifications from the IRS are simple to correct, be aware that there may be situations where legal representation is necessary. If you have questions about letters or notifications from the IRS that you are unable to handle with them directly, or you have made attempts to deal with the issue and feel you are being treated unfairly, it may be time to reach out to a professional. Any time an IRS notice letter indicates income tax fraud, you should find representation immediately.

If you are facing federal charges for tax fraud, we can help. Contact Tim Bower Rodriquez for full case evaluation.

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Understanding Your IRS Notice or Letter

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There are many reasons why you may receive an IRS notice letter. Some of the most common notifications are due to a specific issue or concern.

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Tim Bower Rodriguez

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Tim Bower Rodriguez

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