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Don’t Fear the Tax Man: Handling IRS Letters and Notices

tradingfxdaily by tradingfxdaily
April 13, 2022
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Don’t Fear the Tax Man: Handling IRS Letters and Notices
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Don’t be alarmed

Regardless of the reason the IRS is contacting you, it’s usually not a call for alarm. If action is required on your part, any notice you receive will say so and you’ll have ample time to deal with the matter. Generally, most notices can be resolved easily.

Our TurboTax Live experts look out for you. Expert help your way: get help as you go, or hand your taxes off. You can talk live to tax experts online for unlimited answers and advice OR, have a dedicated tax expert do your taxes for you, so you can be confident in your tax return. Enjoy up to an additional $20 off when you get started with TurboTax Live. 

Read the notice carefully

Carefully read the notice in order to fully understand why the IRS is contacting you and the importance of the issue.

  • Some IRS notices are sent via certified mail, such as the Notice of Intent to Levy, while others are mailed via regular post, like changes made to your tax return.
  • Read all IRS letters and notices you receive, both certified and via regular mail. Do not ignore any of them.
  • The IRS will not send these notices by email or contact you by phone.

Take the required action

Once you’ve carefully reviewed the letter, you’ll know if any action is required on your part. Ignoring it can cause additional steps to be taken by the IRS. For example, a demand for payment notice will progress to a Notice of Intent to Levy, if you ignore it.

You can avoid this by:

  • Calling the phone number shown on the demand for payment notice
  • Making a payment or setting up an installment plan with the IRS
  • Responding within the time frame stated on the notice

If you agree with the notice

You typically don’t need to respond with an explanation if you agree with the notice, though exceptions may apply. For example, if the gross income reported to the IRS by your employer does not match what you put on your return, the agency will send you:

  • Notice CP-2000
  • A proposal to adjust your income
  • Credits or deductions

Scroll to Continue

Maximize your deductions and get every tax break you qualify for when you file your taxes with TurboTax Deluxe. We’ll search over 350 tax deductions and credits to make sure you get the maximum refund possible. Start for free, and get up to an additional $10 off TurboTax Deluxe when you file. 

If you agree with the notice, fill out, sign, and mail the response form to the IRS. The agency will make the appropriate changes to your tax account.

If you disagree with the notice

Respond exactly as instructed on the notice if you disagree with the IRS assessment. In this case, do not sign the CP-2000 Notice response form. Instead, on a separate document include:

  • Reason why you disagree
  • Your phone number
  • Best time to be reached by the IRS

Sign the statement, attach it to the unsigned response form and mail the documents to the IRS.

Retain copies

Keep copies of all letters and notices that you receive from the IRS as well as documents you send to the agency, in case you need to refer to the information in the future.

Scams to look out for

IRS letters and notices are sent to you by mail through the USPS.

  • Do not respond to requests for personal or financial information you may receive via email or social media.
  • Don’t give out any information to anyone who calls you demanding immediate payment for your tax bill. These callers pretend to work for the IRS and often use fake IRS identification numbers to make you think they are legitimate, when, in reality, they’re scammers.

Remember, with TurboTax, we’ll ask you simple questions about your life and help you fill out all the right tax forms. With TurboTax, you can be confident your taxes are done right, from simple to complex tax returns, no matter what your situation.



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