CARL WATTS & ASSOCIATES

May 23, 2016

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Notices and Letters from the IRS
Tax returns have been filed and, whether there’s a refund due or some tax to be paid, you can relax now and enjoy the good weather.

Yet, sometimes, a notice from the IRS comes to spoil a well deserved break. Nobody likes to hear from the taxman, we know, but you should also know that it doesn’t need to be a reason to worry.

Each year, the IRS sends millions of notices and letters to taxpayers for a variety of reasons. All of the IRS letters and notices are sent by mail, they do not contact people by email or social media to ask for personal or financial information.

Receiving a letter from the IRS does not mean for certain that you are in trouble; for example, if your refund check is enclosed in the letter, you will certainly be happy and relieved. However, anytime the IRS contacts you, there is a good possibility that something may be wrong, particularly if you are not expecting any money back from your tax return.


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


The IRS may mail you a notice for one of the following reasons:


  • You have a balance due;
  • You are due a larger or smaller refund;
  • They have a question about your tax return;

  • They need to verify your identity;

  • They need additional information;
  • They changed your return;
  • They need to notify you of delays in processing your return.



Some IRS letters represent serious issues and require complex processes to resolve, while others are simple enough to be dealt with in a quick and easy manner. You will need to open and read the letter to determine the type of situation you’re dealing with. The sooner you take this first step, the better.


If your notice or letter requires a response by a specific date, there are two main reasons you’ll want to comply: to minimize additional interest and penalty charges, and to preserve your appeal rights if you don’t agree.


Here are some facts to keep in mind concerning notices and letters from the IRS.


The notice (CP) or letter (LTR) number, which is located on the top right hand corner of your correspondence, indicates the reason for the notice. For instance, CP 11 – Changes to Tax Return, is sent to a taxpayer to show that there was a change made to the tax return and that change resulted in a balance being due to the IRS. Another example, CP01A, will tell you about the Identity Protection Personal Identification Number (IP PIN) the IRS sent you; while Letter 1615 (LT 18) will ask you for your overdue tax returns.

The notice or letter will provide the IRS contact phone number on the top right-hand corner as well. Typically, you only need to contact them if you don’t agree with the information, if they requested additional information, or if you have a balance due.



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.


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 an issue:

  • 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, 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, as mentioned above, 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.

It’s important to keep a copy of all notices or letters with your tax records. You may need these documents at a later date.

Do not file an amended return ( Form 1040X) for the tax year shown in the upper right hand corner of page 1. The IRS will make corrections for you after they receive your response.

If you receive a notice or letter that looks suspicious and was designed to appear as though it came from the IRS, visit the Report Phishing page on the IRS website. You can also call 1-800-829-1040. You will never be asked for personal information via e-mail or social media.

If you read our previous newsletter, you are well informed now about who can represent you before the IRS. Even if representation is not necessary, advice from your trusted tax professional will always be useful in all your dealings with the IRS.
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