Receiving a notice in the mail from the IRS does not always mean impending doom. It could easily mean that a correction was made to your tax return; compare it to your tax return to learn what adjustment was made. The reason for the letter might be about:
- 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.
- Additional information is needed.
- They changed your return.
- They need to notify you of delays in processing your return.
If you agree with the correction, there is no need to reply unless money is due and you might want to contact your Enrolled Agent (EA) or tax preparer. If you don’t agree, a call to your preparer is in order.
IRS notices usually deal with a specific issue about your tax return or tax account. Your notice or letter will explain the reason for the contact and give you instructions on how to handle the issue.
Remember to watch out for IRS scams. Don’t fall for phone and phishing email scams that use the IRS as a lure. The IRS will contact you about unpaid taxes by mail first – not by phone. Be aware that the IRS does not initiate contact with taxpayers by email, text or social media.
Don’t ignore the letter, follow instructions and keep the letter with your tax records.