Don't ignore it. Most IRS letters and notices are about federal tax returns or tax accounts. Each notice deals with a specific issue and includes specific instructions on what to do.
Usually, the IRS sends certified letters to inform taxpayers of issues that need attention. Some common reasons for certified letters include an outstanding balance, refund issues, return questions, identification verification, missing information, return changes, and processing delays.
Common causes include incorrect information on your return, updates to your filing status, or corrections made by the IRS due to mismatched records. If you receive a certified letter regarding a refund issue, it's important to compare the revised refund amount to the original amount claimed on your return.
The IRS will mail a letter or notice before calling or emailing. The IRS does not: Send unexpected or unsolicited text messages to taxpayers. Initiate contact with taxpayers by email, text message or through social media.
The IRS will issue these balance due notices and letters in gradual stages in 2024 to ensure taxpayers who have questions or need help are able to reach an IRS assistor. This will also provide additional time for tax professionals assisting taxpayers.
An IRS audit letter typically contains the taxpayer's name, tax ID number, contact information, and a request for additional documentation to support claims on the tax return. It may also include the name of the IRS officer handling the case and invite the taxpayer to a meeting.
It is often used for legal documents, and other mail items requiring provable delivery by a specific date. For a higher fee, registered mail provides the services of certified mail and additional protection for items that are irreplaceable or have high monetary value.
We typically contact you the first time through regular U.S. mail delivered by the U.S. Postal Service. To verify the IRS sent the letter or notice, you can search for it on IRS.gov. Some letters are sent from private collection agencies.
Certified letters serve as a means of ensuring reliable delivery and acknowledgment rather than always delivering bad news. Just because you receive a certified letter, doesn't mean you're receiving bad news.
What happens if I don't respond by the due date? It's very important that we hear from you by the date shown on your letter or notice. If you don't respond by the date shown on the letter or notice, we will complete our audit and send you an audit report with our proposed changes to your tax return.
Some IRS notices are sent via certified mail, such as the Notice of Intent to Levy, while others are mailed via regular post, like changes made to your tax return.
1. Audit notification and preparation: The IRS notifies you (or both you and your authorized tax preparer) about the audit, almost always by mail. Usually, the audit will be for a return you filed within the past two to three years.
You may receive a notice or letter asking you to verify your identity and tax return information with the IRS. This helps prevent an identity thief from getting your refund.
What this notice is about. We need more time to verify your income, income tax withholding, tax credits and/or business income. Please allow up to 60 days before reaching out.
The IRS sends letters through certified mail when it needs to reach you about an important tax matter. Often, a certified letter means the IRS wants to meet with you to get more information about a tax return or tax debt, but the agency also uses certified letters to warn taxpayers about collection actions.
It is often used for legal documents and other mail items requiring provable delivery by a specific date. For a much higher cost and with strict packaging requirements, Registered mail provides the services of Certified mail, plus additional protection for items that are irreplaceable or have monetary value.
If an attempt is made to deliver Certified Mail to you, and you either don't answer your door or aren't home, another attempt will be made, or you'll have to pick it up at the post office. Even if you don't answer your door, it's considered undeliverable.
The IRS will never contact a taxpayer using social media or text message. The first contact from the IRS usually comes in the mail. Taxpayers who are unsure whether they owe money to the IRS can view their tax account information on IRS.gov.
Most likely, your audit notice is dated somewhere between 12 and 18 months after you filed your return, assuming the IRS isn't accusing you of understating your income by 25% or more or of fraud.
Who Is Audited More Often? Oddly, people who make less than $25,000 have a higher audit rate. This higher rate is because many of these taxpayers claim the earned income tax credit, and the IRS conducts many audits to ensure that the credit isn't being claimed fraudulently.
We may send you a notice or letter if: You have a balance due. Your refund has changed. We have a question about your return.
Overestimating home office expenses and charitable contributions are red flags to auditors. Simple math mistakes and failing to sign a tax return can trigger an audit and incur penalties. Taxpayers should report all income from Form W-2, Form 1099, and any cash earnings.
Verify contact information
All IRS phone numbers and website addresses should match those on the IRS.gov website, and a specific notice number or reference code may be at the top or bottom of the letter. Don't hesitate to reach out to the IRS directly if you're unsure.