I received a notice from IRS. What should I
do?
The IRS sends a letter or notice to you to request payment for taxes,
notify you of a change to your account, or request additional information.
Please review the information on your entire tax return and compare it
with the information on the notice. If the notice tells you that a correction
was made to your account and you agree with the correction, a reply is
not needed unless a payment is due. If you do not agree with the correction
we made, it is important that you respond to the letter or notice as requested.
Please call or write to us and tell us why you disagree so any necessary
action can be taken. If you are due a refund as a result of our adjustment,
it will be sent to you unless you owe other amounts the law requires us
to collect (for example, related tax accounts, child support, student loans,
etc.). Notices and refund checks are sent from different IRS locations.
Any refund issued as a result of our change or correction, should be received
within 6 weeks from the date of the notice. Refer to Tax
Topic 651, Notices - What to do, for additional information.
I received a CP 2000 Notice from the IRS.
Have these changes been made to my tax account?
This notice informs you of the proposed changes to income, payments,
credits, or deductions, and the amount due to the IRS, or refund due to
you. It is normally a five to six page letter. Refer to Tax
Topic 652, Notice of Underreported Income - CP 2000, for additional
information.
Can you explain IRS' penalty and interest
charges?
Interest is charged on any unpaid tax from the due date of your tax
return until the date of payment. The interest rate is determined every
3 months. If you file on time but don't pay on time, you will generally
have to pay a penalty of ½ of 1% of the unpaid tax for each month
or part of a month the tax remains unpaid. If you owe tax and don't file
on time, the penalty is higher. For more details, refer to Tax
Topic 653, IRS Notices and Bills/Penalty and Interest Charges,
Publication 594, Understanding the Collection Process, or Publication
17, Your Federal Income Tax.
I just received an IRS notice indicating changes
were made to my return, but it appears an attachment to my return which
explained the entry changed by IRS, was not considered. What should I do?
If you believe the IRS made a mistake with the figures, or didn't
consider some important information, call the IRS at 1-800-829-8815 to
discuss the matter. If possible, please have a copy of your tax return
and the notice when you call. For additional information, refer to Tax
Topic 654, Notice of Change to Return.
I received an IRS notice resulting from correspondence
I sent regarding a change to my return. The notice includes additional
penalty and interest charges. How are the penalties and interest figured?
Interest is charged on any unpaid tax from the due date of the return
until the date of payment. The interest rate is determined every three
months and is the federal short-term rate plus 3 percent. Interest is compounded
daily. In addition, if you filed on time but didn't pay on time, you will
generally have to pay a late payment penalty of one-half of one percent
of the tax owed for each month, or part of a month, that the tax remains
unpaid after the due date, up to 25 percent.
The one-half of one percent rate increases to one percent if the tax remains
unpaid after several bills have been sent to you and IRS issues a notice
of intent to levy. For additional information on IRS Notices and Bills/Penalty
and Interest Charges, refer to Tax Topic 653.
The IRS sent me a letter that included an
additional amount of tax due. I read the explanation on the letter, but
I do not agree with the changes which were made. Should I file an amended
return?
If you believe the IRS made a mistake in the figures, call 1-800-829-8815
to discuss the matter before filing an amended return. If possible, please
have a copy of your tax return, and the notice when you call.
I received an IRS Notice titled, "We
Corrected Your Return - Amount Due IRS." It appears I did not get
credit for one of my federal tax deposits. What should I do?
If you account has not been credited with all of your deposits, call
the toll-free number on your notice to discuss the matter. Please have
the notice and a list of your deposits when you call.
I got a notice from IRS saying they changed
my account and I am due an additional refund, but I haven't received the
check yet. What should I do?
Allow at least two weeks from the date of the notice, for your refund
to be mailed to you. We could not include the check with your notice, because
checks are processed in a different location and mailed by a different
system. If it has already been longer than two weeks, please call us at
the toll-free number listed on your notice. If possible, please have a
copy of the IRS notice and a copy of your tax return when you call.
The IRS corrected my return and sent me an
additional refund. Does this mean I am also entitled to an additional refund
on my state tax return?
Whether you are entitled to an additional state tax refund depends
on the nature of the change which was made to your federal return. For
example, if on your federal tax return, you used the wrong line on the
tax tables to figure your tax, this may not have an impact on your state
tax return. However, if the change was made to the amount of your taxable
income on your federal return, it may have an impact on your state tax
return. Contact your state tax office for additional information. It is
helpful to have a copy of your tax returns (federal and state) and a copy
of the IRS notice when you call.
I received an IRS bill for an amended return
I filed. I am not able to pay the whole amount at this time. Will the IRS
allow me to make monthly payments?
For a fee, the IRS may be able to offer an individual payment plan
based on monthly installments. Refer to Tax Topic
202, What to Do if You Can't Pay Your Tax, for more information.
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