How to Respond to an IRS Notice (Including Sample Letters)
Receiving a written notice from the IRS can be one of the most stressful moments a taxpayer experiences. These letters are much easier to handle than you might think, however. Most letters simply request adjustments to recent returns or ask for additional documentation. You may also receive a letter warning you that a payment is late. By keeping the lines of communication you have with the IRS open, you’ll be able to solve nearly any tax issue that they contacted you about. Few people find putting their response down in writing to be an easy task, nevertheless, this is usually your best bet when responding to the IRS.
Key Points for Writing a Letter of Explanation
Once you receive a notice, you’re on the clock and responsible for answering before a set deadline. The letter you receive will clearly state one or more questions that the IRS has about your tax situation.
Present all the answers to these questions in a clear, professional tone. Notices generally come with additional instructions you’ll need to follow.
For example, if the IRS stated that you didn’t specify income in your return because you neglected to include a 1099, then simply attach a copy of it with the letter of explanation you send them. Include up-to-date contact information and then sign your letter to make it official.
Correcting the IRS
While you might think of them as not regular people, IRS agents are human beings who have been known to make mistakes. If there’s a problem, then you shouldn’t ever make hostile remarks. However, you can take the opportunity to respectfully clarify where you think they erred.
In a few odd cases, the IRS has even been known to send notices that include a refund check that a taxpayer did not earn. If you get an erroneous refund, then you shouldn’t cash it because the IRS can charge you interest on it later. Write “void” in the endorsement section on the check’s reverse side and include it with your letter of explanation.
Every letter that you send to the IRS should include, at minimum, the following information
- Taxpayer’s Name and Social Security Number (SSN)
- Tax Period
- Any Relevant Form Numbers
- Tax Period Ending
I am responding to the notice dated MM/DD/YYYY in regards to —-.
Having carefully considered the information provided to me in this missive, which suggests that I did not report income received from a small contract position, I have consulted my records. My own records indicate that I did, indeed, include this income with my last tax return, and I have included an additional copy of the documents that reference this income. Please contact me at the address listed above with any additional inquiries.
Get Help When You Need It
Registered letters from the IRS can cause plenty of stress, but there’s always help available to you from certified professionals. Call Success Tax Relief at 877-825-1179 for help with communicating back and forth with the IRS. Contact us today and take advantage of more than 30 years of experience helping taxpayers navigate tricky situations.