Receiving a letter from the Internal Revenue Service (IRS) can be unsettling, especially if you don’t know why you got one or what to do next. However, getting IRS notices doesn’t automatically mean problem, many IRS notices can be addressed quickly if you understand their purpose. 

 
Why the IRS Sends Notices or Letters 

The IRS issues notices for various reasons, including: 

• A balance due on your account 

• A change in your refund amount 

• Questions about your return 

• Changes or corrections made by the IRS on your return 

• A need to verify your identity 

• Delay in processing in your return 

• Notice of an audit 

IRS notices have a CP or LTR which serves as identifiers to help recipients understand them and why it was sent. Identify the notice or letter numbers found on the right corner of the letter to search for more information.  

What to Do If You Receive an IRS notice or Letter 

Do not ignore an IRS notice as it can lead to further penalties, interest, or other IRS actions. The key is to read the IRS notice carefully and understand the issue. Not all IRS notices require a response but if they do, follow the instructions and respond by the deadline.

• If you have an amount due – If you can’t pay in full, pay what you can by the deadline to reduce interests and penalty charges. 

• If you disagree with the notice – Follow the steps outlined in the notice to dispute information that you believe is incorrect. You must include documents or records that support your position for the IRS to review. 

• If the IRS changed or corrected your tax return – If you agree with the changes, take note of the changes and keep them for your record. The IRS will only expect an action or response if they need more information, you have a balance due, or you disagree with the changes or corrections. 

• If you suspect a scam – If you find the notice suspicious, call 800-829-1040. 

Consider Professional Help 

It is wise to consult a tax professional about complex issues or large amounts to help you with making an appropriate action or response. At 1099 Accountant LLC, we provide professional tax planning and guidance to help you maximize your tax savings. Let us help you with your accounting and taxes so you can focus on what you do best, growing your business. 

Want to learn more?  

You may want to consult and work with 1099 Accountant – We offer online bookkeeping, online advisory services and online tax and accounting services. We offer reasonable rates. We only work with independent contractors, freelancers, and one-person business. We work with locum tenens from California to New York City and everywhere in between. Yes, even Hawaii!  

Contact us toll-free (855)529-1099 or make an appointment for a free consultation. Contact Us