What is an IRS Letter of Explanation?
An IRS Letter of Explanation sounds more intimidating than it sounds. In theory, if we take the “IRS”, meaning Internal Revenue Service out of the title, then it’s just a matter of going back to school. It is simply a letter—an IRS letter, but nonetheless, a letter explaining a situation involving your taxes. Taxes are a serious matter that needs to be kept in check at all times. When it’s not, The IRS will notify a taxpayer if there are any discrepancies. Should this ever happen to you, it is highly recommended to write a Letter of Explanation to them as a response.
Purpose of a Letter of Explanation
The overall purpose of writing a Letter of Explanation is to acknowledge receipt of the IRS’s notification. It also is an excellent way to create a paper trail that documents all of the correspondence between yourself and the IRS.
Think of the duty of a Court Transcriptionist. His or her responsibility requires recording every word that is that is spoken during a deposition. This is most beneficial for tracking what has been said. With an IRS Letter of Explanation, both you and the IRS will be able to track not only what was said, but what commitments have been made as well as what actions were taken to follow up on certain issues.
The IRS Letter of Explanation is just that—explaining the matters of your account, acknowledging that you have indeed received the IRS’s notification, addressing all of your concerns, as well as contesting anything that you might disagree with. It is important to address these matters in a clear and concise way so that the IRS can respond appropriately.
Additional Ways to Supplement a Letter of Explanation
Whatever you are writing about in your Letter of Explanation, it’s important to include any documents to support your point. Even if is regarding an annual tax filing that the IRS may already have on file, include a copy anyway. You never know, it could be that the IRS may have a different file under your name or perhaps another taxpayer has the exact same name as you. It’s rare, but the IRS can make mistakes too!
In addition to providing supporting documents, it is also recommended to make a copy of your letter before mailing it out. Whenever you are communicating with the IRS by letter, always make sure that you have the same documents you have. They usually require the original copy, so if all possible, try to get two ‘original’ copies—one for you and the other for the IRS. So whenever you are corresponding with an IRS representative, the both of you will be able to refer to the same document(s).
Success Tax Relief: Explaining the Facts!
There are several ways to communicate with the IRS. You can do so by phone or mail. Both ways are effective and ought to be utilized, but if nothing else, please take the time to write a Letter of Explanation so that there is written proof. Communicating by phone also has its advantages since you can get an immediate response. Another way is to hire a tax relief consultant that is skilled and experienced in the task of communicating with the IRS on a taxpayer’s behalf. If you prefer the latter, give Success Tax Relief a call today at 1-877-825-1179.