Don’t disregard letters from the Internal Revenue Service if you want a rapid tax refund.
This time of year, letters are ubiquitous, even if Tax Day has passed. In most cases, you’ll be asked to provide additional information about your tax return or to provide documentation to prove your identity.
If you don’t respond, you run the risk of missing out on your tax refund, which could take weeks or months to arrive.
Additional taxes may be due or the amount of your refund may be less than previously stated in a letter known as an adjustment letter. The most common reason for an adjustment is that you provided erroneous information on your tax return.
Taxpayers who believe the IRS has made a mistake in their calculations can use these letters as a guide to resolving their issue.
In the event that you receive correspondence from the Internal Revenue Service, follow these three suggestions.
First and foremost, don’t freak out
The IRS will not send you a tax bill or inform you of an audit in every letter you receive from them. The IRS may have made a correction to your tax return on your behalf, which would result in a cheque for a refund you didn’t expect.
Don’t disregard it
Take care of your mail as quickly as possible if it demands a response or other action. Late penalties and interest costs on your tax payment can quickly spiral out of control if you don’t take care of them immediately enough.
It is possible that you are delaying your return even if you do not owe any money to anyone at all.
A repayment plan is available from the IRS if you get debt and are unable to pay it in full. If you can’t afford to pay your tax bill, you won’t be sent to jail.
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Keep the letter intact
According to the IRS, tax returns should be kept for three years after they were filed, including any letters or notices from the IRS.
As a reference for your tax return, many of these letters offer information concerning money owed to you such as economic stimulus payments. If you have a dispute with the IRS, they can also be used to support you.
Make sure that the IRS has received your tax return and that you’ve gotten your tax refund by checking out the IRS’s official website.