If you have recently received a certified letter from the IRS, it is important to understand what it is and what your next steps should be. Choosing to ignore a certified letter from the IRS can lead you down the wrong road, and have a negative impact on your life.
What is a certified letter from the IRS?
When the Internal Revenue Services (IRS) wants to get in contact with a taxpayer, they send them a certified letter through the U.S. Post Office. This is to demonstrate that they are trying to gain the taxpayer’s attention regarding an issue that they would like to address with them. There are many reasons why they may send a certified letter but here are a few of the top reasons.
1. Outstanding Balance
A certified letter will be sent to an individual regarding an unpaid tax balance. This letter serves as the start of the collections process.
2. Refund Discrepancy
Not all news from the IRS is bad, sometimes it could be good! Individuals or Businesses may receive a letter saying that they can expect a refund from the IRS regarding a discrepancy in their annual tax return.
3. Return Questions
Sometimes the IRS just has some questions regarding a tax return. So long as these questions are not time-sensitive, a certified letter may be sent to help obtain the necessary information.
4. Identify Verification (h4 tag)
The IRS takes identity protection seriously (as it should). The IRS will send certified letters when they need to verify a person’s personal information.
5. Processing Delays (h4 tag)
In the event that there is a delay in processing a tax return, the IRS will send out a notice via a certified letter. This is more of a common courtesy announcement more than anything else.
What To Do If You Have Received a Certified Letter from the IRS
It can be an intimidating situation seeing a letter from the IRS in your mail. The one thing you should do is not ignore the letter. Even if the news is bad you should still read it. Why? Because by sending a certified letter via the mail, the IRS meets its notice requirements so long as the letter was sent via certified mail to your last known address regardless of whether you accept or receive the delivery of the letter. So simply doing nothing does you no good! Instead, you should follow these instructions:
- Read the entire letter carefully: Don’t just skip to the bad parts, you might overlook something! Read the entire letter from the IRS making sure to understand the reason for the notice, what your next steps are, and how best to reach them.
- Make Note of Important Deadlines: If the IRS is sending you a certified letter it means they have something to say. Make sure to be aware of deadlines or dates that are addressed in the letter.
- Establish Contact With the IRS: Individuals who have an outstanding tax balance should contact the IRS to prevent any further collections activities like additional certified letters or phone calls from the IRS.
- Hire a Tax Resolution Specialist: Some people have taxes that are too much to overcome alone. By hiring a certified tax resolution specialist, you can have a professional deal with the IRS on your behalf and find the best solution to your tax problem.
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