The Internal Revenue Service may contact you for several reasons. They do not always involve an audit.
Understanding these reasons can help you avoid unnecessary stress.
Errors on your tax return
One common reason for IRS contact is errors on a tax return. These can include simple math mistakes, incorrect Social Security numbers or missing information. When the IRS detects such errors, it sends a notice explaining the issue and providing instructions on how to correct it.
Unpaid taxes
If a taxpayer owes money, the IRS sends a notice detailing the amount owed, including any penalties and interest. The notice also provides information on how to make a payment or arrange a payment plan if the full amount cannot be paid immediately.
Identity verification
The IRS may contact taxpayers to verify their identity. This often occurs if there is suspicious activity related to a taxpayer’s Social Security number or if a tax return appears to be fraudulent. The IRS might send a letter requesting verification documents to ensure that the correct person filed the tax return.
Missing or incorrect forms
The IRS requires certain forms to be submitted with a tax return. If any required forms are missing or incomplete, the IRS will send a notice requesting the missing information. This can include forms such as W-2s, 1099s or other supporting documents.
Changes to tax laws or updates
Occasionally, the IRS will contact taxpayers to inform them of changes in tax laws or updates to their accounts. These notices are informational and may include tips on how to comply with new regulations or reminders of upcoming deadlines.
Tax credits and deductions
If a taxpayer qualifies for certain tax credits or deductions but did not claim them on their return, the IRS might send a notice about these potential benefits. This can help taxpayers reduce their tax liability or receive a larger refund.
Unreported income
The IRS receives copies of income statements such as W-2s and 1099s from employers and financial institutions. If the income reported on a taxpayer’s return does not match these documents, the IRS will send a notice asking for clarification or additional information.
Receiving a notice from the IRS can be concerning, but reviewing these common reasons can help taxpayers address the issues promptly and correctly.
