How to Write a Letter of Explanation to the IRS (with samples)
If you have received a written notice from the IRS requesting an adjustment to a recent tax return, requesting additional documentation for your return, or if the IRS sends notice that your payment is late, you will need to know how to respond appropriately. Keeping the lines of communication open is key to a successful resolution of nearly all tax issues. While putting your response in writing might sound like a daunting task, it is very likely to be the best and most effective way to respond to the IRS.
There are several key things to remember when writing your letter of explanation to the IRS:
- Present your information in a straightforward and clear manner, addressing all questions raised by the IRS
- Respond quickly and adhere to any deadlines in the correspondence from the IRS. There are likely to be instructions to follow. Follow them carefully.
- Provide additional or supporting documents that are needed to support your perspective. For example, if the IRS has noted that you did not include income in your return for a small contract position and you simply forgot to include the 1099 on your tax return, include a copy with the letter
- If you think that the IRS letter is a mistake or contains erroneous information, outline your explanation clearly and concisely, with a tone of respect. It is in your absolute best interest not to inflame the situation.
- Include accurate contact information and personally sign your letter.
- Get help if you need it. It is wise to find a reputable tax firm that can help you manage all communication with the IRS. With 30 years of experience in this area, Success Tax Relief (877-825-1179) has helped thousands of customers all over the country with complicated communication with the IRS.
We have included a sample template below that you can use in response to a potential error that the IRS has raised. Please note that you should insert as much unique information as possible into this template to communicate about your specific tax issue. This means if the issue raised by the IRS is not “failure to report income related to a small contract position,” you should rewrite this section to reflect what you’re being contacted about.
Also be aware that the address you insert under “Internal Revenue Service” should match the address on the correspondence you have received. Only include the field for “Tax Form” if a specific form was referenced in the correspondence you received.
If you’re not sure what to include in your response to the IRS, contact Success Tax Relief today and let us deal with the IRS!