IRS letters* are landing in mailboxes across the country in higher numbers than they have over the last few years. These are official correspondence sent by the Internal Revenue Service (IRS) to taxpayers. Each letter serves one of various purposes and cover a wide range of tax-related issues.
Here are some common types of IRS letters:
- Tax Return Discrepancies: IRS letters may point out errors or inconsistencies on your tax return and provide instructions on how to resolve them.
- Payment Reminders: If you have unpaid taxes, the IRS may send a letter reminding you to make the payment and outlining the options available to you.
- Audits and Examinations: An IRS letter may inform you that your tax return has been selected for an audit or examination and provide instructions on what records you need to provide.
- Identity Verification: The IRS may request additional information to verify your identity and protect against tax fraud.
- Refund or Overpayment Adjustments: IRS letters may communicate changes to your tax refund or inform you of overpaid taxes, including details on the adjustments made.
- Notices of Intent to Levy: If you have unpaid taxes, the IRS may send a letter notifying you of their intent to collect by levying your assets, such as bank accounts or wages.
- Compliance Requests: IRS letters may request additional information or documentation to support specific claims or deductions on your tax return.
Do not bury your head in the sand and ignore the letter. That will not make them go away! Follow the steps below in a timely manner:
- Read Carefully: Thoroughly read the letter to understand its purpose and any actions required on your part.
- Respond Promptly: Take action as instructed in the letter within the specified timeframe to avoid potential penalties or further complications.
- Seek Professional Help: If you’re uncertain about the letter’s legitimacy or how to proceed, consider consulting a tax professional or contacting the IRS directly for guidance.
- Consulting for IRS Letters can be covered during an initial consult appointment at RES Consulting & Tax Services LLC and the appointment is free of charge. Appointments can be made online for in person or telephone/video meetings to review your IRS letter. Again, it is important to respond to these letters in a timely manner to avoid additional penalties and interest!
Although receiving an IRS letter can be daunting, understanding the different types and knowing how to respond can help alleviate concerns. For that reason, it is best to stay proactive, follow the instructions provided, and reach out to us for assistance before stressing yourself out. Most letters can easily be taken care of with little or no trouble at all!
Ruth Stanley-Cyr, E.A., RES Consulting & Tax Services LLC
“Taking the anxiety out of tax time one client at a time. “
*IRS letters are always sent by USPS. You will never receive an email or phone call alerting you to an issue with the IRS, or asking for information.
