CARL WATTS & ASSOCIATES

April 28, 2014

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We've Got Mail !
Like the majority of taxpayers, you’ve filed your returns and are now relaxed and peacefully waiting for the refund check or deposit in your bank account.

Sometimes, not as often as you might think, you’ve got mail from the IRS, maybe a letter, maybe a notice.

First of all, do not panic! Each year, the IRS sends millions of notices and letters to taxpayers for a variety of reasons.


The IRS sends letters and notices by mail. They do not contact people by email or social media to ask for personal or financial information.

If you receive a letter or notice from the IRS, it will explain the reason for the correspondence and provide instructions.

The notice number prints on the top right-hand side of each page of all IRS notices and on the lower right-hand side of the tear-off stub included with most of them. That number identifies the message the IRS delivers in every notice. While the contents may vary somewhat, every notice with the same number has the same basic purpose.

For instance, a CP09 Notice will most probably contain the following: “We've sent you this notice because our records indicate you may be eligible for the Earned Income Credit (EIC), but didn't claim it on your tax return.”

IRS letters often have a CP number associated with them. The “CP” stands for “Computer Paragraph,” and it helps the IRS keep track of all the letters they send out.

You can find a long but apparently not comprehensive list of notices and letters from the IRS, both in English and Spanish, on the IRS website.


Currently, the IRS is in the process of redesigning and revising its correspondence with taxpayers for clarity, effectiveness and efficiency. The new format includes a plain language explanation of the nature of the correspondence, clearly states what action the taxpayer must take and presents a clear, clean design.    



There are many reasons why the IRS may send a letter or notice. It typically is about a specific issue on your federal tax return or tax account. A notice may tell you about changes to your account or ask you for more information. It could also tell you that you must make a payment.

Many of these letters and notices can be dealt with simply, without having to call or visit an IRS office.

You may get a notice that states the IRS has made a change or correction to your tax return. If you do, review the information and compare it with your original return.

If you agree with the notice, you usually don’t need to reply unless it gives you other instructions or you need to make a payment.

If you do not agree with the notice, it’s important for you to respond. You should write a letter to explain why you disagree. Include any information and documents you want the IRS to consider. Mail your reply with the bottom tear-off portion of the notice. Send it to the address shown in the upper left-hand corner of the notice. Allow at least 30 days for a response.

You shouldn’t have to call or visit an IRS office for most notices. If you do have questions, call the phone number in the upper right-hand corner of the notice. Have a copy of your tax return and the notice with you when you call. This will help the IRS answer your questions.

Keep copies of any notices you receive with your other tax records.

If there is an issue to be solved, remember that an IRS problem is just like a toothache, nobody wants to have one, but it won’t go away until you deal with it.

Here are a few tips to keep in mind when dealing with such a “toothache”:


  • Never ignore the IRS letters. They will not leave you alone.

  • Always respond to the exact address or phone number from your letter. The IRS has many different departments and if you send it to the wrong place, do not expect any results.

  • Pay attention to deadlines.

The IRS usually expects an answer within 30 days of the date of the notice or 60 days if you live outside the United States. An envelope will be enclosed for your convenience. If you have lost the envelope, please send your response to the address listed on the first page of the response form. Send your response, a copy of the notice you received, and any other necessary documents (e.g., a signed statement of disagreement and supporting documents) to the address on the notice. If you are making a payment, use the provided payment voucher to ensure correct application to your account.

  • Do not sign any paper if you are not sure about the consequences.

If you do not agree with any changes, or do not agree with some of the changes in the notice, do not sign the notice. Instead, explain in a signed statement why you do not agree, attach the statement and supporting documentation for consideration to the response form, and submit the response form and attachment to the IRS. Include your phone number with area code and the best time of day to call.

You may find it useful to read some of our previous newsletters which dealt with related subjects, like The IRS Tax Collection and The IRS Installment Agreement

And of course, always look for professional help in all your dealings with the IRS.
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office@carlwatts.com
Washington DC
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