Did you get an IRS letter on a change in your tax amount?

Over 11 million letters have been sent out to taxpayers by the Internal Revenue Service, informing them that they will not be getting the actual refund they originally calculated or that they owe even more in taxes to the government

Over 11 million letters have been sent out to taxpayers by the Internal Revenue Service, informing them that they will not be getting the actual refund they originally calculated or that they owe even more in taxes to the government

In this article

The letter to taxpayers by the Internal Revenue Service (IRS) on a change in tax amount dropped without warning. If you are one of the 11 million and the contents of the letter are unfamiliar to you, don’t worry. We are here to explain.

The tax advocacy office of the IRS which helps taxpayers settle disputes says that the number of letters sent out so far this year is about five times more than what was sent out in 2019. 

What the letters say

These letters are called CP-11, CP-12, and CP-13, or Letter 6470, and are legal under federal law. They are math correction letters issued by the IRS after making quick corrections in the place of conducting detailed audits. That is why you’ve received the letter from the IRS on the tax change.

Many of these letters had to be sent again by the IRS to inform receivers about how they can make appeals against their tax corrections and what their legal rights are. Taxpayers are eligible to appeal these corrections but could be required to undergo a full audit in case they do. 

Fixing past errors

While processing tax forms, the IRS may have committed errors in the math which it is seeking to fix now. But a lot of the errors seem to be connected with recovery rebate credit. Many people are seemingly doing something known as double dipping.

Double dipping refers to the practice of filing for credit even after getting the complete amount in your stimulus check. This practice is not allowed. 

The IRS has acknowledged that the Covid-19 pandemic has reduced the speed at which tax matters are being processed and has asked taxpayers to be patient as they sort out these issues.

Pandemic problems

Congress had altered rules regarding the stimulus laws on the go since these laws were passed based on estimates. And this has led to the current set of issues due to the uncertain nature of the pandemic. 

If you happen to get a letter regarding any change in your taxation amount, simply call the number given on the form. You will most likely be directed to an automated system that will file an appeal for you. The IRS phone number is 800-829-8374.

Be prepared to see a rise in the number of such letters next year as well. Since the new tax credits for children have begun only this year, experts expect taxpayers to make more errors while filling up their returns next year.

Meanwhile, if you’ve filed for a tax extension, now is the time to pay.

Need help? Reach out to us at [email protected] and we’re here to help you in any way we can.

This page is purely informational. Line does not provide financial, legal or accounting advice. This article has been prepared for informational purposes only. It is not intended to provide financial, legal or accounting advice and should not be relied on for the same. Please consult your own financial, legal and accounting advisors before engaging in any transactions.

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