IRS Letters Or Notices
You should respond to all letters and notices if you want to protect your rights or to initiate an action. If the action you decide to take is no action, that is ok too. The further in the collection process you wait to make a correction, the harder and more time consuming it will be. People have paid me thousands of dollars to correct actions that would have been very simple, and less costly, if done the moment the IRS first contacted them. This tax relief guide will give you better information about how to respond. Each letter can be found on the IRS website. Just Google the letter or form number and select the sites you want explanations from, including the link to the IRS website.
Please read my descriptions for each letter. Even if you didn’t get that letter, the descriptions contain a lot of useful information to help you understand the IRS.
Great Tax Reduction Technique
What if you get a letter from the IRS charging you additional tax based on a math error or a clerical error? How would you like to avoid paying it? Here’s how…Write back within 60 days and say you request an abatement under section 6213(b)(2). This may get it abated. It’s worth a try. Sometimes they reassess it, but they must issue a “notice of deficiency” giving you appeal rights. Include in the letter a statement that you disagree with the additional tax and the action you want taken, such as “I disagree with the additional tax assessment because I did everything correctly and I want you to remove the taxes.” Also state that if they don’t remove the taxes, you are requesting that they issue a notice of deficiency so you can file an appeal. The notice of deficiency will list the changes that they made. (Often you get a correction letter that doesn’t spell out why they made the changes in the first place.) Use this approach for letters involving a missing SS# (supply the number and copy of Social Security card if you have it, in your letter). Send your letter to the address they request you respond to. Never be afraid to call or write for an explanation of the letter or the adjustments being made. You may just want to pay it, or if you are contesting it, you have a better understanding of what you are contesting. If you do call for an explanation, do not give any information as to what and why etc. you did anything! They will record it and it can be used to deny your request for abatement.