CARL WATTS & ASSOCIATES

July 24, 2017

Troubles viewing this message? View in browser online here
When the Sender is the IRS
Most of the times, people look forward to receiving letters, whether on paper or electronically. It is fair to ask how many people would look forward to receiving mail from the IRS? Probably very few, although there is rarely a reason to actually fear them either.

Each year, the IRS sends millions of notices and letters to taxpayers for a variety of reasons. Most important is that you should always remember that all of the IRS letters and notices are sent by post mail, they do not contact people by email or social media to
ask for personal or financial information.

An IRS letter typically is about a specific issue on your federal tax return or tax account. A notice may tell you about changes to your account or ask you for more information. It could also tell you that you must make a payment.

Many of these letters and notices can be dealt with simply, without having to call or visit an IRS office.

Receiving a letter from the IRS does not mean for certain that you are in trouble; for example, if your refund check is enclosed in the letter, you will certainly be happy and relieved. 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.

The letter or notice you receive from the IRS 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 (if not most) 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.

Another example, CP01A, will tell you about the Identity Protection Personal Identification Number (IP PIN) the IRS sent you; while Letter 1615 (LT 18) will ask you for your overdue tax returns.

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.

Do not file an amended return (Form 1040X) for the tax year shown in the upper right hand corner of page 1. The IRS will make corrections for you after they receive your response.

If you receive a notice or letter that looks suspicious and was designed to appear as though it came from the IRS, visit the Report Phishing page on the IRS website. You can also call 1-800-829-1040. You will never be asked for personal information via e-mail or social media.

And, of course, always look for professional help in all your dealings with the IRS.
TOP
Repeated issues with image download?
This may be helpful.
Click here !
www.carlwatts.com
office@carlwatts.com
Washington DC
tel/fax 202 350-9002