Why Would IRS Send Me a Certified Letter? Understanding the Importance

Latest Facts and News:

• The IRS processed over 168 million individual tax returns in 2023.
• Electronic filing of tax returns increased by 2.6% in 2023 compared to the previous year.
• The IRS has resumed full collection actions after COVID-related restrictions.

A certified letter from the IRS can really make anyone stressed. This is especially true when taxpayers have vivid questions in their minds, like, why would IRS send me a certified letter?

And, on top of that, opening the letter to clear out confusion sometimes backfires as the IRS uses very formal, complex, and difficult-to-interpret language that leaves taxpayers more confused about what they actually need. 

But that is why we are here: to help you understand why you received certified mail from IRS and what to do next. This blog post will surely answer all the questions running through your mind.

So, let’s dive in!

Bonus: Understanding Tax Warrants 

Common Reasons for IRS Certified Letters

Without knowing the reason why would IRS send me a certified letter, taxpayers become concerned about the consequences. However, in reality, the letter is not always a warning; it may simply inform you of a particular situation. 

Let us look at the key reason for whether your IRS tax notice is that serious or not: 

Handling an Outstanding Balance

If you have old debt pending, you have an idea behind the question you have from the beginning: Why would IRS send me a certified letter? 

The letter that is in your inbox is a notification about the balance that needs to be settled. Ignoring the balance or not paying tax may result in penalties which is one more reason why you should address the situation early on. 

Tax deadlines can make you feel uneasy when they are on the verge of becoming harsh recovery plans, so the best advice is to contact our tax accountant. We can help you manage the situation and make sure everything is settled.

Fixing Refund Discrepancies

Sometimes the answer to why would IRS send me a certified letter lies in the fact that there is an issue with your refund. They may inform you that the refund amount can be higher or lower than expected. If this happens, contact our tax accountant. 

So what they will do is look for any discrepancies and assist you in correcting them if the error was made by the IRS itself. It’s important to ensure you get the right refund amount.

Addressing IRS Questions About Your Tax Return

If the IRS itself has questions about your tax return, then the query why would IRS send me a certified letter is not as difficult to answer.

That being said, there are a lot of reasons that answer why the IRS questions your tax return, including factors like having multiple sources of income, complex deductions, or claiming dependents. The IRS correspondence will simply outline what’s needed. This is where we step in to respond quickly and correctly, so your refund is no longer on hold.

Verifying Your Identity with the IRS

In some cases, the IRS may need you to verify your identity. And to make that happen, the IRS can request some additional documents and match them to the older documents you sent. 

So to answer your question, why would IRS send me a certified letter, is just that they’re looking for more information about you. The reason? Now that can be due to anything. To have a better perspective, Hopkins CPA Firm can help you gather the required documents and resolve the tax situation you may fall prey to.

Correcting Missing Information on Your Return

The IRS might send a certified letter if there’s missing information on your tax return. This could be something like an incorrect Social Security Number (SSN) or a missing signature. 

Missing information is not always a simple problem; sometimes it is due to fraudulent activities. In those cases, we can assist you in understanding what is wrong and even correcting the mistakes if the letter is about that. This will at least clear your doubt about why would IRS send me a certified letter and can successfully help you avoid any delays or penalties.

Making Necessary Changes to Your Return

If the IRS makes any changes to your return by themselves, you’ll likely receive a certified letter. Please keep in mind that these changes may affect your refund, deductions, or tax liability. 

So, if you’re still asking, “Why would IRS send me a certified letter?”—this is your answer. But it is actually quite serious in this case. Following the seriousness of the situation, let us help you understand why these changes were made and ensure everything is in order.

Dealing with Processing Delays

Sometimes the IRS itself experiences processing delays, and for that reason, they send a certified letter to inform you of the same. If this happens, out of all the concerned reasons that answered why would IRS send me a certified letter, this is the easiest to deal with. 

How to Respond to IRS Certified Letters?

Now that you have a clear answer to the question, why would IRS send me a certified letter? Let’s move on to what you should do next:

1. Read the letter carefully: Most IRS letters are related to your federal tax returns or account. Each letter focuses on a specific issue, like taxes owed, changes to your account, or requests for payment. Understanding the letter is important because it will tell you exactly what needs to be done.
2. Review the information: If the letter is about a change or correction to your tax return, check the details against your original return. If everything looks correct, make a copy and keep it in your records. You only need to take action if you disagree, want to add more information, or have due balance.
3. Follow any instructions: Always keep in mind that no matter if the letter is from the IRS or the private debt collector, you need to follow the given instructions very carefully. You can always check the IRS notices online by just logging in to the account.
4. Respond only when asked: Sometimes there is no need to give a reply to the IRS notice, as all the letters are not warnings. Some letters are just to inform you of a certain situation. But, if you’re asked, only then use the number given in the top right corner of the letter.
5. Dispute if necessary: If you don’t agree with what the notice says, you can dispute it. Follow the instructions in the letter to file your dispute, and make sure to include any relevant documents or information.
6. Keep the letter for your records: Save any notices or letters you get from the IRS. These might include notices about changes to your return or actions taken by the IRS on your account. It’s always a good idea to keep these for future reference.

If the tax situation is too complicated or overwhelming, don’t hesitate to call us. We can help you get everything sorted out.

The key takeaway is not to ignore the letter. Ignoring it can lead to more serious problems down the line, like getting a tax levy notification, having federal tax lien notice from the IRS, receiving an IRS audit letter, or receiving wage garnishment notice. It’s better to address it head-on as soon as possible.

Final Thoughts!

When you receive a certified letter from the IRS, it can be extra concerning since you wouldn’t immediately know what’s wrong. 

But, understanding why would IRS send me a certified letter is the first step you need to take. These letters are just a formal step to make clear and transparent compliance between the authorities and the taxpayers. 

The best piece of advice is to take responsibility for what has happened. But, if it feels too much to handle on your own, simply reach out to Hopkins CPA Firm. Let us help you understand exactly what the IRS needs.