There are many reasons an Internal Revenue Service notice may be incorrect. For example:
- The IRS notice of non-receipt of credit for exact tax payment
- The Internal Revenue Service has been known to post a tax payment in the wrong year. This explains how a taxpayer can have a refund from a previous year but end up having to pay the next year. This can be fixed; however until it is, your “assumed” tax debt is being increased with penalties, interest and fines. You must make the Internal Revenue Service aware you are questioning the accuracy of the notice and ask them to fix the problem. If you have trouble making contact or getting a satisfactory response from the IRS, a tax professional can resolve the issue for you. Always ask for a copy of your transcript of account as evidence of correction.
- The IRS notice states your income incorrectly
- The Internal Revenue Service has a record of your income, but it is not for the right taxpayer. This can happen if an employer makes a mistake by mixing up employee names and social security/tax ID numbers. It is imperative to respond to the IRS notice with the correct information.
- The IRS notices of additional taxes owed on income reported as non-taxable
- The claim of non-taxable income can consist of gifts, loans or inheritances. Be absolutely certain of the accuracy that your claim is taxable before paying the additional amount requested by the Internal Revenue Service.
- Notice stating the IRS never received your tax return
- When submitting your tax return by mail, be sure to send it as Certified Mail with a signed return receipt requested. Keep all online confirmations of submission as well.
When the Internal Revenue Service sends you a notice, read it thoroughly to ensure your understanding and confirm accuracy. If you find any mistakes, inform the Internal Revenue Service prior to making any payment.
Because of the red tape and enormity of the Internal Revenue Service, you may end up in a disagreement regarding their information. You can challenge the IRS. It must first be done in writing. Your letter must be direct and to the point and must include personal information such as your name, address, and social security number. Indicate clearly the tax year that is referenced in the notice.
Always be polite and business-like when writing to the Internal Revenue Service. It is important to establish a good first impression. Remember the Internal Revenue Service knows very little about you and your tax situation. By clearly stating what your tax problem is, it will be easier for them to make the corrections.
