Most letters and notices from the IRS deal with federal tax returns or tax accounts. Each notice deals with a specific topic and includes specific instructions on what to do. A notice may refer to changes in a taxpayer's account, to taxes due, to a request for payment, or to a specific issue on a tax return. Taking timely action could minimize additional interest and penalty charges.
If a letter is about an amended or corrected tax return, the taxpayer should review the information and compare it with the original return. If the taxpayer agrees, they should write down the corrections on their personal copy of the tax return and keep it for record. Generally, a taxpayer will only need to take action or contact the IRS if they disagree with the information, if the IRS requested additional information, or if they have an outstanding balance. Perform the actions that are required of you, including payment.
The IRS and authorized private debt collection agencies send letters by mail. Most of the time, all the taxpayer needs to do is read the letter carefully and take appropriate action or file a payment. This month, the IRS will send millions of letters to taxpayers who, in its opinion, underpaid the tax agency. It's important to pay attention to this letter called CP14 because ignoring it could lead to sanctions, according to Mark Steber, director of tax information at Jackson Hewitt.
The Taxpayer Advocacy Service is an independent organization within the IRS that helps taxpayers and protects taxpayer rights. LITCs can represent taxpayers in audits, appeals, and tax collection disputes before the IRS and in court. The first thing to do is to check the sender's address to make sure it comes from the IRS and not from another agency. In addition, the IRS may be notifying you that you may be the victim of identity theft or that you have an outstanding tax liability.
Individuals should keep this and any other IRS letter about prepaying child tax credits in their tax records. First, if you pay the full amount before the due date printed on CP14, the IRS says it won't charge you any interest. Once you've found the CP or LTR number, you can continue to search for letters & of IRS Notices, which is a search tool for individual and business taxpayers. People who received prepayments can also check the amount of their payments using the CTC update portal available from the IRS.
To get a copy of your notice or letter from the IRS in braille or large print, visit the Information page on the Alternative Media Center for more information. You can also send an email to the IRS using the contact information that will be included in the letter, along with your documentation. The IRS charges 0.5% per month on unpaid taxes, up to a maximum of 25% of the total balance due, which can accrue. If a taxpayer needs to call the IRS, they should use the number that appears in the upper right corner of the notice and have a copy of their tax return and letter.
It will take up to 15 business days for the IRS Alternative Media Center to convert your notice to your preferred format and return it to you by mail.