Tax Tip 2021-52
Do’s and don’ts for taxpayers who get a letter
or notice from the IRS
The IRS mails letters or notices to taxpayers for a variety of reasons including if:
- They
have a balance due.
- They
are due a larger or smaller refund.
- The
agency has a question about their tax return.
- They
need to verify identity.
- The
agency needs additional information.
- The
agency changed their tax return.
Here are some
do's and don'ts for taxpayers who receive one:
- Don't ignore it. Most
IRS letters and notices are about federal tax returns or tax accounts. The
notice or letter will explain the reason for the contact and gives
instructions on what to do.
- Don't panic. The
IRS and its authorized private collection agencies generally contact
taxpayers by mail. Most of the time, all the taxpayer needs to do is read
the letter carefully and take the appropriate action.
- Do read the notice. If the IRS changed the tax return, the taxpayer
should compare the information provided in the notice or letter with the
information in their original return. In general, there is no need to
contact the IRS if the taxpayer agrees with the notice.
- Do respond timely. If the notice or letter requires a response by a
specific date, taxpayers should reply in a timely manner to:
- minimize additional interest and penalty charges.
- preserve their appeal rights if they don’t agree.
- Do pay amount due. Taxpayers should pay as much as they can, even if they
can’t pay the full amount. People can pay online or apply for an Online
Payment Agreement or Offer in Compromise. The agency offers several payment options.
- Do keep a copy of the notice or letter. It’s important to keep a copy of all notices or letters
with other tax records. Taxpayers may need these documents later.
- Do remember there is usually no need to call the IRS. If a taxpayer must contact the IRS by phone, they
should use the number in the upper right-hand corner of the notice. The
taxpayer should have a copy of their tax return and letter when calling.
Typically, taxpayers only need to contact the agency if they don’t agree
with the information, if the IRS request additional information, or if the
taxpayer has a balance due. Taxpayers can also write to the agency at the
address on the notice or letter. If taxpayers write, they should allow at
least 30 days for a response.
- Do avoid scams. The
IRS will never contact a taxpayer using social media or text message. The
first contact from the IRS usually comes in the mail. Taxpayers who are
unsure if they owe money to the IRS can view their tax account information on IRS.gov.
More
Information:
Understanding Your IRS Notice
or Letter
Tax Topic 651, Notices – What to
Do
Tax
Topic 653, IRS Notices and Bills, Penalties, and Interest Charges
Tax
Topic 654, Understanding Your CP75 or CP75A Notice Request for Supporting
Documentation
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