Reasons I Would Receive a Certified or Other Letter from IRS
You received a letter from the IRS and you are about to go into panic mode. According to the knowledgeable experts at Mark Dicus & Company there are a number of reasons that you may have received a letter from the IRS and not all of them of are cause for concern. That being said, you should never ignore correspondence from the IRS. Instead take a deep breath and keep reading to learn more about the three most common letters you may receive from the IRS.
What Does a Certified IRS Audit Letter Look Like?
One of the most common types of letters from the IRS is to inform you that you are being audited. The letter will offer an explanation of any adjustments that have been made on your return and the amount of any balances due. The balance due will also include any penalties or interest that has been added to your original amount. Your letter will come with a code listed on the top of the right hand corner. The most common of these codes are CP-2000, CP-11, 21 or 22. You have 30 days to submit your payment or contact the IRS to disagree with the amount. If you receive a letter with the code CP-12 then it’s your lucky day. CP-12 indicates that the IRS has made an adjustment in your favor and you will be receiving a refund. An audit letter with the code 566GC is sent out to inform you that your return has been randomly chosen for an audit. A field agent will be assigned to your case and you will be required to provide proof of financial items listed in the letter within 30 days. If you are unable to collect the necessary items to fulfil the date on the deadline, you should contact the IRS and request an extension.
The IRS Sent Me a Letter Saying They Need a Missing Tax Return or More Information
If you have missed a tax return and it is flagged in the IRS database, you will receive a notice to inform you that you need to file a return within 30 days. Once your return has been filed you may even receive a refund if one is due to you. If you owe money and you can’t pay the amount owed, you can set up a payment system with the IRS until the balance due is paid in full.
I Received a Letter from the IRS Saying I Owe Money
There are a number of different letters that you could receive if you owe money to the IRS. Ignoring the letter is not in your best interest as the IRS can legally proceed to collect monies due by garnishing your wages or by levying your bank account. Remember, the IRS doesn’t have to prove that you received the letter to proceed against you; simply mailing the letter to you is evidence enough. Instead, contact the IRS to make arrangements to pay the balance. If the balance that you owe is over $10,000, the IRS will notify you with a letter stating they will file a lien in your name which gives them the authority to collect money received from a sale of your assets. It can also affect your ability to make any purchases by reflecting negatively on your credit.