The IRS mails millions of letters to taxpayers every year for many reasons. Here are seven simple suggestions on how individuals can handle a letter or notice from the IRS:
1. Don’t Panic
Simply responding will take care of most IRS letters and notices.
2. Read the Entire Letter Carefully
Most letters deal with a specific issue and provide specific instructions on what to do.
3. Compare It with the Tax Return
If a letter indicates a changed or corrected tax return, the taxpayer should review the information and compare it with their original return.
4. Only Reply If Necessary
- There is usually no need to reply to a letter unless specifically instructed to do so, or to make a payment.
5. Respond Timely
Taxpayers should respond to a letter with which they do not agree. They should mail a letter explaining why they disagree. They should mail their response to the address listed at the bottom of the letter. The taxpayer should include information and documents for the IRS to consider. The taxpayer should allow at least 30 days for a response.
When a specific date is listed in the letter, there are two main reasons taxpayers should respond by that date:
- To minimize additional interest and penalty charges.
- To preserve appeal rights if the taxpayer doesn’t agree.
6. Don’t Call
For most letters, there is no need to call the IRS or make an appointment at a taxpayer assistance center.
If a call seems necessary:
- The taxpayer can use the phone number in the upper right-hand corner of the letter.
- They should have a copy of the tax return and letter on hand when calling.
7. Keep the Letter
A taxpayer should keep copies of any IRS letters or notices received with their tax records.
Frequently Asked Questions
What should I do if I get a letter from the IRS?
Start by staying calm and reading the entire letter carefully. Most IRS letters address specific issues and provide clear instructions. Often, a simple response will resolve the matter.
Do I need to respond to every IRS letter?
No, not every IRS letter requires a response. Only reply if the letter specifically requests action or if you disagree with the contents. Otherwise, you may simply keep it for your records.
What if I disagree with the IRS notice?
If you disagree, you should respond by mailing a letter to the address provided. Explain your position clearly and include any supporting documents. Be sure to respond by the deadline to preserve your rights and minimize penalties.
Should I call the IRS about the letter?
In most cases, calling is unnecessary. If the letter suggests a call is appropriate, use the phone number provided and have both your letter and tax return ready when you call.
Why is it important to keep IRS letters?
Keeping copies of IRS correspondence is essential for maintaining accurate tax records. These documents may be important for future reference or resolving any follow-up issues.