About IRS Letter 6470
Have you gotten IRS Letter 6470 in the mail recently? Many taxpayers have been receiving this letter and don’t quite understand what it means. Here’s a brief overview.
What is IRS Letter 6470?
This letter addresses a taxpayer's right to appeal changes the IRS made to the amount of the Recovery Rebate Credit you claimed on your 2020 tax return. The Recovery Rebate Credit (RRC) allowed people who didn't receive their first and second Economic Impact Payments (or better known as the stimulus checks) to claim them on their tax returns.
Why did I receive Letter 6470?
Taxpayers who received IRS Letter 6470 should have also received a previous letter letting them know that their RRC credit amount was changed or corrected. The IRS didn't initially provide enough information about a taxpayer's legal right to appeal to changes they made, which is why they sent Letter 6470.
According to the IRS website,
“Taxpayers who received a math error notice before July 15, 2021 did not receive language advising them to contact the IRS within 60 days if they disagreed with our changes to the return. To ensure taxpayers understand their right to disagree, the IRS will issue a supplemental notice describing the cause of the error and providing taxpayers 60 days from the issuance of the new notice to dispute the change made to the return.”
Therefore, IRS Letter 6470 is a follow-up to a CP11, CP12, or CP 13 Notice that you should have received in the mail earlier this year. Here are what those notices are about:
CP11: The IRS made changes to your tax return because they believe there was a miscalculation and you owe money as a result of these changes.
CP12: The IRS corrected one or more mistakes on your tax return and you are now due a refund or your original refund amount has changed as a result.
CP13: The IRS made changes to your tax return because they believe there was a miscalculation and you are not due a refund and you do not owe an additional amount.
How do I respond to Letter 6470?
It’s important that you read the letter carefully along with the previous letter to ensure you understand what changes have been made to your tax return. If you agree with the changes, you do not need to take any further action. If you do not agree with the changes made to your tax return and would like to appeal, you typically have 60 calendar days from the date on your Letter 6470. You will also find information on how to appeal and a contact number or address on the letter.
Disclaimer: This material is prepared for informational purposes only, and is not tax advice. Please speak with a tax professional or visit the additional resources below to see how this information may apply to you.
