CARL WATTS & ASSOCIATES

July 08, 2019

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Letter from the IRS
The only time you want to hear from the IRS is when you get your tax refund, either directly into your bank account, or via the U.S. Postal Service. Yet, each year, the IRS sends millions of notices and letters to taxpayers for a variety of reasons.

Receiving a letter from the IRS does not automatically mean that you are in trouble. However, anytime the IRS contacts you, there is a good possibility that something may be wrong, particularly if you are not expecting any money back from your tax return.

If you receive a letter or notice from the IRS, it will explain the reason for the correspondence and provide instructions.


The IRS may mail you a notice for one of the following reasons:

  • You have a balance due;

  • You are due a larger or smaller refund;

  • They have a question about your tax return;

  • They need to verify your identity;

  • They need additional information;

  • They changed your return;

  • They need to notify you of delays in processing your return.

Some IRS letters represent serious issues and require complex processes to resolve, while others are simple enough to be dealt with in a quick and easy manner. You will need to open and read the letter to determine the type of situation you’re dealing with. The sooner you take this first step, the better.

If your notice or letter requires a response by a specific date, there are two main reasons you’ll want to comply: to minimize additional interest and penalty charges, and to preserve your appeal rights if you don’t agree.

Here are some facts to keep in mind concerning notices and letters from the IRS.

The notice (CP) or letter (LTR) number, which is located on the top right-hand corner of your correspondence, indicates the reason for the notice. For instance, CP 11 – Changes to Tax Return, is sent to a taxpayer to show that there was a change made to the tax return and that change resulted in a balance being due to the IRS.

The notice or letter will provide the IRS contact phone number on the top right-hand corner as well. Typically, you only need to contact them if you don’t agree with the information, if they requested additional information, or if you have a balance due.


If you do not agree with the notice, it’s important for you to respond. You should write a letter to explain why you disagree. Include any information and documents you want the IRS to consider. Mail your reply with the bottom tear-off portion of the notice. Send it to the address shown in the upper left-hand corner of the notice. Allow at least 30 days for a response.

If there is an issue to be solved, remember that an IRS problem is just like a toothache, nobody wants to have one, but it won’t go away until you deal with it.

Here are a few tips to keep in mind when dealing with such an issue:

  • Never ignore the IRS letters. They will not leave you alone.

  • Always respond to the exact address or phone number from your letter. The IRS has many different departments and if you send it to the wrong place, do not expect any results.

  • Pay attention to deadlines.

  • The IRS usually expects an answer within 30 days of the date of the notice or 60 days if you live outside the United States. An envelope will be enclosed for your convenience. If you have lost the envelope, send your response to the address listed on the first page of the response form. Send your response, a copy of the notice you received, and any other necessary documents (e.g., a signed statement of disagreement and supporting documents) to the address on the notice. If you are making a payment, use the provided payment voucher to ensure correct application to your account.
  • Do not sign any paper if you are not sure about the consequences.

    If you do not agree with any changes, or do not agree with some of the changes in the notice, do not sign the notice. Instead, as mentioned above, explain in a signed statement why you do not agree, attach the statement and supporting documentation for consideration to the response form, and submit the response form and attachment to the IRS. Include your phone number with area code and the best time of day to call.

    It’s important to keep a copy of all notices or letters with your tax records. You may need these documents at a later date.

    Since we touched the subject of mail from the IRS, this year in particular, be on the watch for new versions of two tax-related scams. One involves Social Security numbers related to tax issues. The other threatens taxpayers with a tax bill from a fictional government agency. Below are some details about these scams to help you recognize them.


    The SSN Scheme

    The latest twist includes scammers claiming to be able to suspend or cancel the victim’s Social Security number. This scam is similar to and often associated with the IRS impersonation scam.

    It is yet another attempt by con artists to frighten taxpayers into returning robocall voicemails. Scammers may mention overdue taxes in addition to threatening to cancel the taxpayer’s SSN.

    The last four digits of your SSN are easier for hackers to obtain than your full identity. Any unexpected IRS contact that claims to be official but includes only the last four digits of your tax i.d. number should be treated with suspicion.



    Fake Tax Agency


    This scheme involves a letter threatening an IRS lien or levy.

    The scammer mails the letter to the taxpayer; the lien or levy is based on bogus overdue taxes owed to a non-existent agency. The fake agency is called the “Bureau of Tax Enforcement” , but, of course, there is no such agency.

    The lien notification scam also likely references the IRS to confuse potential victims into thinking the letter is from a legitimate agency.

    Both these schemes show classic signs of being scams.

    If you receive a notice or letter that looks suspicious and was designed to appear as though it came from the IRS, visit the Tax Scams - How to Report Them page on the IRS website.


    Remember, the IRS will never:

    • Call to demand immediate payment using a specific payment method such as a prepaid debit card, gift card or wire transfer. The IRS does not use these methods for tax payments. Generally, the IRS will first mail a bill to any taxpayer who owes taxes using the U.S. Postal Service. All tax payments should only be made payable to the U.S. Treasury and checks should never be made payable to third parties.

    • Threaten to immediately bring in local police or other law-enforcement groups to have the taxpayer arrested for not paying.

    • Demand that taxes be paid without giving the taxpayer the opportunity to question or appeal the amount owed.

    • Ask for credit or debit card numbers over the phone.


    Although many tax scams may peak during tax-filing season, please remain vigilant to these often aggressive and evolving schemes throughout the year.

    As always, we advice you to enroll professional help in all your tax dealings. This will not only provide you with the detailed answers you are seeking, but will also save you precious time and, more often than not, your money as well.
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