Did you receive a letter from the IRS?
Receiving a letter from the IRS can feel stressful, but it doesn’t always mean something is wrong. Learn what common IRS notices mean, when action may be required, and how to protect yourself from scams.
If you recently received a letter from the IRS, there is no need to panic; we are here to help. While this can feel stressful, it does not necessarily mean something is wrong. Typically, when the IRS sends letters, they are regarding federal tax returns or tax accounts. Each notice pertains to a specific issue like the following:
- Taxes Owed
- Payment Request
- Correction
- Credit
If you receive a letter from the IRS, make sure you open it and read it carefully to ensure no action is needed. In many cases, you will not need to take any action unless you disagree, owe money, or if the IRS asks you for more information. Each notice should explain the reason for the letter and clearly outline the next steps.
After reading the letter, be sure to compare the information to your original tax return or tax records. If there is a change or correction, and you agree with it, we recommend noting it on your personal copy and keeping the notice with your records. If you do not agree with the change, follow the instructions included in the letter to file a dispute.
If the letter is informing you that a balance is due, it is vital to take action as soon as possible. Immediate action can help reduce penalty charges or additional interest. If you are unable to pay the bill in full, read more here to learn about the IRS's offer of payment options.
While you do not usually need to reply, if necessary, use the phone number provided in the upper right-hand corner of the notice. Always keep these notices in your personal records for the recommended three years from the date the tax file return was filed.
Lastly, always stay on the lookout for scams. The IRS will never contact you through social media, and their first point of contact typically comes via mail. If an amount is truly owed, we suggest that you go ahead and call the IRS and put a hold on the account, so it allows enough time to pay and/or reply to the notice, so additional penalty and interest isn’t accrued. When in doubt, contact a professional.