The letter one expects from the IRS is a refund cheque. However, it doesn’t happen in most cases, and the letter you get from IRS often relates to the tax return. Over here, the point of discussion is how to respond IRS letters.
IRS communicates directly with the person they believe has done something wrong during tax return. In case IRS sends you a letter, there is nothing to get panicked. You need to go through the letter or notice to understand the reason for contact and the way to proceed further.
But before, telling you the ways to handle the IRS letter or notice, you need to understand why IRS sends you the notice?
Here are some reasons for which IRS sends Notice:
- You have a balance due
- You are due a larger or smaller refund
- We have a question about your tax return
- We need to verify your identity
- We need additional information
- We changed your return
- We need to notify you of delays in processing your return
Remember, IRS do not for ask money, unless you are doing some mistake. Now, as you already understand the reasons for getting the notice, you are thinking about how to reply IRS letter. So, here are steps that you need to follow.
Nothing to get panicked
You need not panic one you get a letter or notice. Carefully read the letter or notice. Most of the letters contain the process one needs to follow. Further, all the notices give ample time to the tax payers to deal with the matter. Most of the notices resolved only after one or two discussions. However, irrespective of the reason for sending the letter, most of the notices are not a call for alarm. It is important to know how to respond IRS letter
Confirm the Authenticity
Several fraud IRS scams are reported in recent times. Thus, once you get a letter from the IRS, you check its authenticity. You can call the IRS to verify that is it sent by them or not. If IRS mailed you, then they will agree and instruct you for the further. However, if the IRS did not send you anything, then they will help you find out the scammers.
If the IRS mailed it, then as mentioned, it is important to read out the notice carefully. Most of the notices are about the federal tax return. However, the notice is related probably any specific issues such as changes to tax payers’ account. The notice may ask you about more information such as you owe tax and that you need to pay the amount that is due.
The notice also comes with the process to deal with the matter. So, reading the notice carefully solves your half of matters. If you are still not understanding how to reply IRS letter, then you must contact your accountant related to it.
Take the Action
Once you went through the letter, now it is time to take the action. You know the action that you need to take as mentioned in the notice. However, you must not ignore it by any means. Your ignorance may make the IRS take other steps against you.
You can directly call the IRS office to know more details process regarding how to respond IRS letter. You can also take the help of the accountants for this.
Reach Out to IRS with Your Response
If you agree with the notice, you need not respond with an explanation. You need to fill up the Notice CP-2000 form along with the proposal to adjust your income and credits or deductions. Once you fill the form and send it to the IRS, they will make the changes.
However, in case you are not happy with the notice from the IRS, you can inform them. However, in such a situation you must not fill CP-2000 response form. You can send a separate document including:
- The reasons you disagree
- Your phone numbers
- Best time to reach the IRS
Keep the Copies
Keep all the copies of the letters and document that IRS mailed you. However, you must also keep the copies of the replies you mailed them.
There is nothing to panic once you get a letter from the IRS. You need to go through the letter and decide how to respond IRS letter. You can take the help of professional accountants who know how to deal with this.
Do you receive a letter or notice from IRS? Are you tensed about it? You do not need to be tensed as IRS letter may come for any reason. Get in touch with us to further proceed with the letter officially.
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