When you receive a letter from the IRS, it usually means that they have detected a potential issue on your tax return. These issues may seem overwhelming at first but can often be cleared up easily with some double-checking of numbers. These are often chalked up to a faulty online automated system. Even though there may not be as much reason to panic as it might seem, it is still important to understand the letter and act quickly.

What is a CP-Series Notice?

A CP-Series notice is a letter sent by mail which details the issue with your tax return. These notices can be received year-round. The new automated system allows the IRS to be more aggressive when spotting issues and sending out letters, often in error. Be aware that you will have only 30 days to respond to your CP-Series notice, and gathering documentation and support to send to them may take some time.

Automated System Mistakes

It is overwhelming to read that you or a dependent’s identity has been stolen. Luckily, the fact that the system is automated means that it is known to make mistakes. Follow the instructions on your letter quickly to get the issue resolved.

Financial Miscalculations

Many letters will note the amount due and the reason for the additional payment due. Be sure to keep track of all financial information. If your records and the records of a third party do not match up, you should be prepared to present relevant documentation if you think the IRS or third party has made an error. Do your best to present all the documentation to us that you can, and we can help you sort through what should be reported while determining what went wrong.

Pay Special Attention to CP-2000 Notices

These notices are particularly daunting because they often announce changes to your tax return that will be unfavorable to you. In the event you receive a CP-2000 notice, you should try to respond as quickly as possible. The longer you wait, the more difficult it will be to reverse these changes.

How to Take Action

Miles Tax Advisory can help you when the paperwork is overwhelming and the numbers aren’t adding up. Obtaining as much information as possible is key.

Work Through Your IRS Letter with Miles Tax Advisory

Ask questions and understand your next steps. We are always here to assist you!