Are you experiencing anxiety during tax season due to the accumulation of IRS Letters in your mailbox? Even if an IRS letter appears to be regular correspondence, it's important to read it carefully if you want to guarantee a hassle-free tax filing process and optimize your possible returns.
If you disregard these letters, you may lose out on crucial information or chances to apply for tax credits to which you are legally entitled. Discover why some IRS Letters are valuable to save and how they can help you when it comes time to file your taxes by reading on.
What Exactly Are These Letters From the IRS?
These IRS Letters are related to stimulus payments and provide important information regarding the recipient's recovery rebate. The first batch of letters, identified as CP 11, CP 12, or CP 13, notifies recipients that the IRS has processed their tax return and identified errors, such as discrepancies in income or dependent status, which may impact the calculation of their recovery rebate.
This could result in the recipient being owed more money, owing nothing, or potentially owing money on their taxes. However, these initial letters failed to include information about the appeals process, which the IRS is legally obligated to provide. Subsequently, a second follow-up letter, known as the 6470, was sent out hastily by the IRS to address this oversight.
The 6470 letter provides additional details about the appeal process and includes the necessary contact information for recipients to appeal the decisions outlined in the initial letters. The content of both sets of letters is legitimate and serves to inform recipients about their recovery rebate and their rights to appeal any decisions made by the IRS regarding their tax return.
Types of IRS Letters That You Should Never Discard
The following four IRS letter types are ones that you, as a taxpayer, should never discard.
IRS Notification of an Audit
If you receive an audit notification from the IRS, it will typically be sent to you via certified mail. The letter will contain important details such as your full name, taxpayer ID or social security number, the specific form number being reviewed, and an explanation of the information under scrutiny.
Additionally, the letter will provide contact information for the IRS agent handling your case and instructions on how to proceed with the audit process. In such situations, it is highly advisable to seek guidance from an experienced tax attorney in Irvine to ensure that your rights and interests are safeguarded throughout the audit proceedings.
IRS Adjustment Letter
An adjustment letter from the IRS is typically issued to notify taxpayers of additional taxes owed or adjustments made to their refund amount. These letters always include clear instructions on how the recipient should respond, with a typical deadline of 30 days for a response.
If you disagree with the IRS's assessment, the letter will typically instruct you to submit a written response outlining your reasons for disagreement. Seeking guidance from a tax attorney is advisable in these situations, as they can provide insights into the IRS's evaluation criteria and help formulate an effective response.
Possible Theft of Identity
If you suspect that your social security or tax ID number has been stolen and used for fraudulent tax purposes, the IRS may send you a "Potential Identity Theft" letter. This letter typically contains instructions on how to verify your identity using an online tool provided by the IRS. Alternatively, it may include a phone number to call or direct you to visit a local Taxpayer Assistance Center for verification.
It's crucial to carefully review the letter and follow the outlined steps to address the situation. It's important to exercise caution with any communication claiming to be from the IRS. Keep in mind that the IRS will never reach out to you via social media, email, or text messages. Their primary mode of communication is typically through U.S. mail and occasionally via certified mail.
If you receive a letter from the IRS, remain calm and read it thoroughly. Whether the contents of the letter are positive or negative, taking prompt action, if necessary, is essential to resolving any issues.
Child Tax Credit Letter
If you've received a letter from the IRS regarding the child tax credit, it's important not to disregard it. The letter, known as Letter 6419, contains crucial information for taxpayers who received advanced child tax credit payments. It includes details such as the total amount of advanced payments received and the number of qualifying children used to calculate the payment.
While some taxpayers may have already received this letter, others can expect to receive it later. Letter 6419 serves as a valuable tool for taxpayers to maximize their tax benefits. By comparing the advanced payments received with the remainder of the child tax credit they're eligible to claim on their tax return, taxpayers can ensure they're receiving the full amount owed to them.
Advanced Child Tax Credit payments represent 50 percent of the estimated amount of the Child Tax Credit that taxpayers may properly claim on their tax return during the filing season. Therefore, utilizing the information provided in Letter 6419 can help taxpayers accurately report their child tax credit and potentially receive additional money from the IRS.
The Bottom Line!
You may greatly improve your tax-filing experience by being aware of IRS mailings and being proactive. You may make sure that you're not just in compliance with tax laws but also optimizing your potential refunds by paying attention to these notifications and following any instructions that may be required.
Set yourself up for success this tax season by taking charge of your tax situation and preventing the accumulation of IRS Letters, which may lead to needless stress.
