Getting a letter from the IRS can be stress-inducing. The good news is, this formality isn’t always a bad thing. That said, it’s important to understand the reasons the IRS often sends certified letters, so that you how to respond to correspondence from the tax collection agency.
The IRS sends certified letters for all sorts of reasons. If you have an outstanding tax liability or there are issues with your tax return, you may receive a letter from the IRS. The same can be said for taxpayers who left information out of their tax returns or those whose identity has been called into question. Often, these letters include confusing instructions for taxpayers. After receiving a letter from the IRS, call a tax CPA. A professional can read the letter and its accompanying instructions and determine the right action so that you can get things sorted out with the IRS.
Our team of skilled professionals is here to help you through tax season and beyond. To learn more about the tax accountants at US Tax Help, call us today at (541) 362-9127.
Why Does the IRS Send Taxpayers Certified Letters?
Usually, the IRS sends certified letters to inform taxpayers of issues that need attention. Some common reasons for certified letters include an outstanding balance, refund issues, return questions, identification verification, missing information, return changes, and processing delays. If you’re unsure of the reason for a certified letter from the IRS, ask your tax accountant for help. A skilled professional can assess a certified letter to determine its purpose and help you proceed appropriately.
Outstanding Balance
If you haven’t paid your taxes, the IRS may want to have a word with you. Sending a certified letter might shock you into remembering your tax liability, which is what the IRS wants. If the purpose of your recent certified letter from the IRS was to remind you of your tax liability, don’t stress. While willfully ignoring an outstanding balance can result in financial penalties, a simple mistake may go without consequences. That said, it’s important to address the issue right away. Filing late returns and taxes can be overwhelming, especially with a strict deadline hanging over your head. Call a tax accountant immediately if you recently received a certified letter from the IRS regarding an unpaid tax balance. An experienced professional tax accountant can help you address your tax liability so that you remain in good standing with the IRS.
Refund Issues
Sometimes the IRS sends certified letters to inform taxpayers of a refund discrepancy. Depending on the situation, you may learn that your refund will be greater or smaller than you initially anticipated. It’s important to consult a tax accountant if you receive a certified letter from the IRS informing you of a refund discrepancy. A professional can compare the initial amount expected to the new amount determined by the IRS. If the IRS got it wrong, a tax CPA can help you rectify the situation. Any changes to a refund should be assessed critically to ensure you receive the correct amount from the IRS.
Return Questions
Filing an annual tax return can be a complicated process, especially if you have multiple sources of income. Naming multiple dependents, filing joint returns, and claiming deductions, can also cause complications. If the IRS has pressing questions regarding your return, it may send you a certified letter. The IRS will explain the information it requires and provide guidance within this letter. A tax CPA can help you answer any questions the IRS might have regarding your recent return so that your refund is not affected.
Identity Verification
Although you know who you are, the IRS may need to double-check. The IRS may send you a certified letter if there are issues with your tax return or other tax forms regarding your personal information. In this certified letter, the IRS will likely ask you to complete its identity verification process. In order to do so, taxpayers may have to compile identifying information that proves they are indeed themselves. Even a simple mistake on a tax return can call your entire identity into question. A tax CPA can help you meet the IRS’s criteria for identity verification so that any issues with your tax return are ironed out.
Missing Information
Life is hectic, and sometimes you forget things. When those things are all-important tax forms, the IRS may send you a certified letter. In a certified letter, the IRS will explain the specific tax forms or income information it needs to process your return properly. Remember, the IRS already has lots of information regarding your employment and financial situation. You must verify that information by providing the necessary documents and records along with your tax return. If you fail to do so, it might result in a certified letter or an audit from the IRS. A tax accountant can help you promptly provide the missing information to the IRS or, better yet, help you file your return in the first place to help you avoid unnecessary issues.
Return Changes
Sometimes, the IRS makes edits to tax returns. When it does, you must be informed. In such a situation, the IRS may send you a certified letter explaining any amendments and asking you to agree to or dispute the changes. Ask your tax CPA to look over any revisions so that you can quickly respond to the IRS’s letter regarding changes made to your tax return.
Processing Delays
While you might expect to receive your tax refund in the days or weeks after submitting a return, the IRS isn’t always that fast. If there is a considerable processing delay with your tax return, the IRS might send you a certified letter explaining the situation. In this case, there’s not much for you to do but wait. However, if a return is taking months and you haven’t heard anything else from the IRS, tell your tax CPA. An experienced professional US tax accountant can help you determine the reason for the delay.
Call Our Team for Tax Help Today
If you recently received a certified letter from the IRS and need assistance deciphering it, our tax CPAs can help. To learn more about the tax accountants at US Tax Help, call us today at (541) 362-9127.
