What To Do If the IRS Sends You a Letter
Why the IRS Might Send You a Letter
There are a variety of reasons the IRS might send you a letter or notice. Here are a few common reasons:
You have a balance due
You are due a larger or smaller refund
The IRS has additional questions, needs additional information, or needs to verify your identity for your tax return
The IRS has made changes to your tax return
What to Do if the IRS Sends You a Letter
Carefully Read the Notice or Letter
The first thing you should do is read the letter thoroughly. The letter will address the specific issue and include specific instructions on what to do.
Review the Information
If the letter is about a changed or corrected tax return, you should compare the information provided in the letter to your original return. If you agree with the changes, there is no need to contact the IRS. You should follow any instructions given and make notes about the correction on your copy of the tax return and keep it for your records.
Respond in a Timely Manner
If you don’t agree, the notice will tell you how can respond with an appeal. Some letters may require a response by a specific date, so you should respond in a timely manner. Otherwise, you may lose the right to appeal if you disagree. The IRS says you should allow at least 30 days for a response.
If you need to pay, it’s important that you pay as much as you can, even if you can’t pay the full amount you owe. This will help you minimize the amount of interest and penalties. The letter will provide ways you can pay.
Keep a Copy of Your Notice or Letter
Once you have followed the instructions on the letter, you should keep a copy with your tax records as you may need it later. The IRS suggests that you keep notices and letters for at least three years from the date you filed the tax return.
How to Determine If the Letter is a Scam
Unfortunately, people receive fake letters claiming to be the IRS. It’s important to know how to spot these IRS-related scams so you don’t get taken advantage of. The IRS will never:
Demand a specific payment method, such as prepaid debit card, gift card, or wire transfer. They will request full payment but will provide a range of payment options.
Demand immediate tax payment
Threaten to bring in local police, immigration officers, or other law enforcement agencies
Threaten to revoke a license or immigration status
If you find that the letter is fraudulent, you should report it to the IRS.
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.
