Getting a certified letter from the Internal Revenue Service (IRS) can be nerve-wracking, to say the least! Your mind starts racing with questions: “What’s going on?”, “What did I do wrong?”, “why did the IRS send me a letter?” and “How do I respond?” Relax; you’re not alone in this! Many people have been in your shoes.
A certified IRS letter from the IRS is designed to get your attention. It’s an indication that something important and time-sensitive requires your immediate response. Understanding the purpose of this letter is important to avoid any potential issues.
The IRS uses certified mail to ensure their critical communications reach you directly. This method provides proof of mailing, requires a signature upon delivery, and allows for electronic tracking. This also answers the common question: What comes by certified mail? It signifies that the matter at hand needs prompt attention, such as tax debts or important notifications.
But why does the IRS take such measures? What are the common reasons behind these certified letters, and how should you respond? This blog will explore the various scenarios that might prompt the IRS to send certified mail and offer practical steps to handle each situation effectively.
Read on to understand the reasons behind every certified letter from IRS and how to manage them confidently.
Also Read: What to Do When You Receive Mail from the IRS?
What is a Certified Letter?
The IRS uses the U.S. Postal Service to send mail to millions of Americans. However, not all mail gets delivered, and some of it is very important and time-sensitive. When the IRS needs to make sure that their mail reaches the recipient, especially if previous attempts have failed, they use certified mail. But certified mail what does it mean? Essentially, it’s a way to ensure the mail is tracked, and a signature is required upon delivery, providing the IRS with proof that you received their communication.
A certified IRS letter has specific features to ensure delivery:
- Proof of Mailing: When the IRS sends certified mail, they receive a mailing receipt. This receipt is part of a tracking system to confirm that the mail reaches the intended recipient.
- Signature Requirement: Certified mail from the IRS requires a signature upon delivery. It wouldn’t leave the mailbox without one. If the recipient doesn’t sign for it, the mail is returned to the IRS. So, if you’re wondering, “Do I have to sign for certified mail?” The answer is yes. Your signature is necessary to confirm receipt.
- Electronic Delivery Tracking: The IRS can track the delivery status of certified mail electronically, either online or by phone.
If you have received IRS letter or notice, it usually means that it is urgent and important. It indicates that the IRS expects a response within a certain time frame, and failing to respond could have serious consequences.
There may be more than 100 reasons that the IRS sends you a letter, and with that, the IRS also gives you resolution options, such as an offer in compromise with IRS, innocent spouse relief IRS, or penalty abatement IRS.
If you require assistance with any of this, Hopkins CPA Firm can help by explaining the options, advising on the necessary steps, and aiding in effective communication with the IRS.
Why Does the IRS Send Taxpayers Certified Letters?
Certified letters from the IRS signal urgent tax issues needing immediate attention. Responding quickly can prevent penalties and further complications. Here are some of the most common reasons why you might receive one:
If You Have an Outstanding Balance
If you owe taxes, the IRS will start by sending standard mail. If you ignore these notices, they will escalate to certified mail. The certified IRS letter will explain how to resolve your tax debt with options like an offer in compromise or an installment agreement. Respond quickly to avoid extra interest, penalties, or severe actions like wage garnishment or bank levies.
If There Is a Refund Discrepancy
Certified mail from IRS isn’t always bad news. If there is a discrepancy with your expected tax refund, the IRS will inform you via certified mail. This could mean your refund is more or less than you expected. Read the notice carefully and compare any new refund amounts with your original return to understand the changes.
If the IRS Has Questions About Your Return
Sometimes, the IRS has questions about your tax return. If the questions are critical or need a quick response, they will send a certified letter. This could involve clarifying sources of income, confirming your address, or verifying tax credits and deductions. Responding promptly is important to avoid delays in processing your refund.
If You Need to Verify Your Identity
To protect against identity theft, the IRS may send a certified letter to verify your identity. The letter will include instructions on completing the verification process, which often requires providing identification like credit card or loan account numbers, and sometimes a mobile phone number or past tax returns. Complete this process quickly to avoid delays.
If More Information Is Needed
If the IRS needs additional information to process your return, they might send a certified letter. This could be due to missing W-2 information or mismatched employer details. The letter will include instructions on how to submit the required information, either over the phone or online. Sometimes, this type of letter can also indicate an audit, with a deadline for submitting supporting documents.
If There Are Return Amendments
When the IRS makes changes to a filed tax return, they send a CP2000 letter explaining the changes. The letter will detail how to agree with or dispute these changes and may require supporting documentation. Respond promptly to avoid further delays in processing your return.
If There Are Processing Delays
Certified mail from the IRS may also be used to notify you of significant processing delays. If the IRS needs more time to process your refund due to potential issues like owing other federal taxes, they will send a CP44 notice. This notice doesn’t require action but keeps you informed about the delay.
If you need help with responding to these notices, or if you’re asking, how do I send a registered letter? in response to the IRS, Hopkins CPA Firm can guide you through the process. We can help you communicate effectively with the IRS to resolve any issues quickly and smoothly.
Additionally, Hopkins CPA Firm offers a range of other services to help you manage your financial health. We specialize in insurance planning services to ensure you’re adequately protected and retirement planning services to help you secure your future. Whether you’re dealing with tax issues or planning for the long term, we’re here to support you every step of the way.
Do’s and Don’ts When You Receive Mail from the IRS
It’s important to know how to handle mail from the IRS to avoid any problems with your taxes. Understanding what to do and what not to do can help you manage your tax affairs smoothly and prevent unnecessary stress. Here’s a simple guide to help you with that.
| Do’s | Don’ts |
| Take Timely Action: A notice may reference changes to your account, taxes owed, a payment request, or a specific issue on a tax return. Acting timely could minimize additional interest and penalty charges. | Don’t Ignore It: Most IRS letters and notices are about federal tax returns or tax accounts. Each notice deals with a specific issue and includes specific instructions on what to do. |
| Review the Information: If a letter is about a changed or corrected tax return, review the information and compare it with the original return. If you agree, make notes about the corrections on your personal copy of the tax return and keep it for your records. | Don’t Throw It Away: Keep notices or letters received from the IRS, including adjustment notices, Economic Impact Payment notices, and letters about advance payments of the 2021 child tax credit. You may need to refer to these when filing your 2021 tax return in 2022. In general, keep records for three years from the date you filed the tax return. |
| Respond to a Disputed Notice: If you don’t agree with the IRS, mail a letter explaining why you dispute the notice. Send it to the address on the contact stub included with the notice, including any supporting information and documents for the IRS to review. | Don’t Panic: The IRS and its authorized private collection agencies do send letters by mail. Most of the time, all you need to do is read the letter carefully and take the appropriate action. |
| Remember There is Usually No Need to Call the IRS: If you must contact the IRS by phone, use the number in the upper right-hand corner of the notice. Have a copy of your tax return and the letter when calling the agency. | Don’t Reply Unless Instructed to Do So: There is usually no need to reply to a notice unless specifically instructed. Taxpayers who owe should reply with a payment. IRS.gov has information about payment options. |
| Read the Entire Letter Carefully: Letters from the IRS include the type and reason for the notice, detailed instructions on the next steps, and the most appropriate method of contact. | Don’t Fall for Scams: The IRS will never contact you via social media or text message. The first contact from the IRS usually comes in the mail. If you are unsure if you owe money, view your tax account information on IRS.gov. |
| Make Note of Important Deadlines: If the IRS wants forms completed or supporting documentation, the certified letter will have a deadline and instructions for returning the information. | Don’t Assume All Letters are the Same: Each IRS letter or notice deals with a specific issue and includes specific instructions. Don’t assume that the action required is the same for all letters. |
| Establish Contact to Prevent Collections: Individuals with outstanding tax balances should establish contact with the IRS to prevent collection activities like additional letters and phone calls. | Don’t Forget to Keep Copies: Always keep copies of any correspondence you send to the IRS for your records. This can help resolve any issues if there is a dispute later. |
This table simplifies the key actions to take when you receive mail from the IRS, ensuring you understand each point clearly.
How to Respond Appropriately to IRS Certified Mail?
Receiving a letter or notice from the IRS can feel overwhelming, but knowing how to respond effectively can ease your concerns. Here’s a straightforward guide to help you understand how to handle the situation and how to mail a certified letter if necessary.
- Carefully Review the Letter: Start by reading the letter or notice thoroughly. Keep it for your records, as it may contain important information regarding your tax situation.
- If You Agree with the Notice: If the letter aligns with your understanding of your tax situation, follow any requested actions outlined in the notice. There’s no need to reply unless specifically instructed to do so.
- If You Disagree with the Notice: If you don’t agree with what the letter says, follow the instructions provided to dispute the information. Include any supporting documents and details to help the IRS understand your position. It’s important to reply by the deadline to protect your right to appeal.
- If You Have a Balance Due: If the letter states that you owe money, make a payment by the due date, even if you can’t pay the full amount. Paying on time can help minimize additional interest and penalties.
- If Your Tax Return Was Changed: If the notice informs you of changes to your tax return, compare the details in the letter with your original return. If you agree with the changes, note them on your copy for future reference. You only need to take further action if the IRS requests additional information, if you owe money, or if you disagree with the changes.
- If You Suspect a Scam: If the letter seems unusual or doesn’t match what you expect, it’s wise to be cautious. Call the IRS at 800-829-1040 to verify the authenticity of the communication and follow their guidance.
With these steps, you can handle IRS-certified mail confidently and effectively. If you ever find yourself asking, what comes by certified mail? remember that it usually indicates a serious matter that needs your attention. Now that all the questions, like what is a certified letter and the reasons I would receive a certified letter from IRS have been resolved, let’s wrap up this guide.
In Closing!
Receiving a certified letter from IRS can indeed be unsettling, but knowing the reasons behind it and how to respond can significantly ease your concerns. The IRS sends these letters to ensure you address important issues promptly, whether it’s about an outstanding balance, a discrepancy in your refund, or a request for additional information.
