What Are IRS Letters?
An IRS letter is an official notice sent by the Internal Revenue Service to inform taxpayers about issues related to their tax accounts. These letters can address a variety of matters, such as changes to your tax return, requests for additional information, or notifications of unpaid taxes. Receiving an IRS letter doesn’t necessarily mean you’re in trouble; it’s a way for the IRS to communicate important information that may require your attention.
Common IRS Letters and Their Purposes
| IRS Letter/Notice | Purpose |
| CP2000 | Notification of underreported income or discrepancies between your return and third-party data |
| CP501 | Reminder of a balance due on your tax account |
| CP503 | Second notice of unpaid taxes if no response to CP501 |
| CP90/CP297 | Final notice of intent to levy and notice of your right to a hearing |
| Letter 4883C | Request for identity verification to protect against fraud |
| Letter 2205-A | Notification of a scheduled audit of your tax return |
What to Do If You Receive an IRS Letter
If you’ve received an IRS letter, here’s how you should respond:
- Read the Letter Carefully: Understand why the IRS is contacting you.
- Verify Its Authenticity: Ensure the letter is genuine by checking the IRS’s Understanding Your IRS Notice or Letter page.
- Check Your Records: Compare the information in the letter with your tax records.
- Follow the Instructions: The letter will outline the steps you need to take.
- Respond Promptly: If required, reply by the deadline specified to avoid any penalties.
- Keep a Copy: Retain a copy of the letter and your response for your records.
- Consult a Professional: If you’re unsure, consider seeking advice from a tax professional like Dimov CPA.
Frequently Asked Questions
1. How long do I have to respond to an IRS letter?
Usually, you have 30 days to respond, but the exact timeframe will be specified in the letter. Acting promptly helps avoid penalties.
2. Can I contact the IRS for clarification about a letter?
Yes, you can call the IRS at the number provided in the letter. Be ready to verify your identity when you call.
3. What happens if I ignore an IRS letter?
Ignoring an IRS letter can lead to penalties, interest, or enforcement actions like liens or levies. It’s important to address any correspondence promptly.
Reach out to us today for personalized assistance with your tax questions.
