The IRS sends letters to taxpayers for a variety of reasons. Usually, the letter is a notice stating that you owe additional taxes because you failed to report income or for some other reason. However, the IRS also sends letters if it believes a taxpayer is owed an additional refund that could be paid if an amended return were filed. Before fear strikes, read the letter carefully to determine what you must do.
The IRS has resigned its notices to make it clearer to a taxpayer why he or she is receiving the letter. There are dozens of different types of notices and other letters. Here is a rundown of some of the more common notices (additional information about notice numbers can be found here).
Do not ignore any letter you receive. You may have to write back to the IRS or telephone the service to discuss your letter. You may need to send copies of certain statements, checks, or other receipts to prove a questionable item; keep the originals with the copy of your tax return and other receipts.
Important: When calling the IRS about a notice, be sure to write down the IRS employee’s identification number, which is given automatically at the start of every call. This will help you if you need to call back or in case you follow IRS advice that turns out to be incorrect.
When in doubt, check it out. Contact a tax advisor who can explain the impact of the notice on you and what action, if any, to take. The advisor’s fees may be less than the tax you would otherwise have to pay without the advisor’s help.
For 2009, 21.9 million individual taxpayers who itemized deductions reported $31.8 billion in deductions for noncash charitable contributions. Corporate stock donations accounted for the largest percentage of total noncash donations, followed by clothing donations.
Source: Statistics of Income Bulletin, Spring 2012View all factoids