You filed your tax return on April 15, and today a letter from the Internal Revenue Service showed up in your snail mail box.
Don't freak out. While the IRS sends written notices year-round, a lot of the mailings go out after the traditional tax filing season ends. The agency has had time to sort through this year’s final batch of returns and flag those that it thinks need added attention.
Again, don’t panic. An official communication from Uncle Sam’s tax collector doesn’t mean the IRS is mounting a full-scale investigation into your tax life.
In most cases, the mailings are routine requests for more information or clarifications of what you entered on your Form 1040, and can be taken care of without a lot of hassle.
Here are some tips on what to do when you get mail from the IRS.
Read the letter. That sounds obvious, but some people toss IRS communications into a desk drawer to deal with later or worse, into the trash. If it is an issue that can be resolved quickly, you want to take care of the matter as soon as possible.
Not only will that ease your mind, but if, for example, you do owe the U.S. Treasury money (or more money), any delay in dealing with it could add to your bill.
Make sure it’s legitimate. When you read the letter or notice, do so carefully. Not only do you want to ensure that the information related to your filing is correct, you want to make sure that it’s not a scam.
Most tax con artists take the electronic route. But taxpayers and crooks have learned that that the IRS’ first contact with a taxpayer if there’s a problem with their account usually comes in the mail. So, tax scammers have adjusted, with some creating written cons to try to steal taxpayer money and identities.
If you have any doubts that the letter is real, contact the IRS directly. One of the easiest ways to do this is by checking your online taxpayer account that you created at IRS.gov.
Follow the written instructions. Okay, you’ve confirmed the IRS letter is real. If it’s about a changed or corrected tax return, compare the mailing’s information with your original return. If you realize that the IRS change was correct — that happened to me years ago — then note the correction on your tax return copy. I’m partial to yellow highlight pens.
In cases where the tax agency adjustment takes care of the matter, you’re done. You typically don’t have to do anything else if you agree with the IRS’ finding.
But even if you agree, if the IRS letter does ask for more info, or more money because of the change, then you need to follow the letter’s instructions about complying.
And if the letter specifically asks you to respond, you should use the telephone number in the upper right-hand corner of the notice. Have the mailing and your original tax return handy when you call.
Dispute the notice if you disagree. The IRS is not infallible. If you believe the agency is wrong in its written assessment of your tax situation, you can dispute the official IRS finding. Follow the instructions in the notice to dispute what the notice says. Include information and documents for the IRS to review when considering the dispute.
Keep the letter or notice with your tax records. Regardless of whether you resign yourself to the IRS’ mailed finding or plan to dispute it, keep the notice(s) for your records. This includes adjustment notices when the IRS takes action on your account. The general rule is to keep the notice/mailings in your files for three years from the date the associated tax return was filed.
Here's hoping you never get an IRS letter. But just in case, be ready.
You also might find these items of interest:
- 10 tips to help you deal with an IRS tax notice
- IRS redesigning tax notices so they're more intelligible
- IRS audit statute of limitations guides tax record keeping
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