Understanding IRS Correspondence
Receiving a letter from the IRS can be unsettling. It’s crucial to remain calm and respond promptly and professionally. Ignoring the letter won’t make the issue disappear; in fact, it can worsen the situation. These sample letters provide templates for various scenarios, guiding you in crafting clear, concise, and respectful responses.
Remember to always keep a copy of any letter you send to the IRS for your records. Accuracy and completeness are essential. Verify all information before submitting it and cite the notice number or reference number provided in the IRS correspondence. Consult with a tax professional if you are unsure about the best course of action.
7 Sample Letters for Common IRS Issues
Below are examples covering common interactions with the IRS. Adapt them to your specific situation. Do not simply copy and paste; tailor each letter to accurately reflect your circumstances.
Each sample addresses a different scenario, from requesting payment plans to providing additional information. Consider these examples as a starting point for crafting your own effective response.
Sample Letters
Sample Letter 1: Requesting a Payment Plan
[Your Name]
[Your Address]
[Your City, State, Zip Code]
[Your Phone Number]
[Your Email Address]
[Date]
Internal Revenue Service
[Address provided on IRS Notice]
RE: Notice Number [Notice Number]
Tax Year: [Tax Year]
SSN/EIN: [Your SSN or EIN]
Dear Internal Revenue Service,
I am writing in response to your notice regarding an unpaid tax liability for the tax year [Tax Year]. I acknowledge the debt of $[Amount]. Due to [briefly explain your financial hardship, e.g., unexpected medical expenses, job loss], I am unable to pay the full amount at this time.
I would like to request an installment agreement to pay off the outstanding balance. I propose paying $[Amount] per month. I have attached a copy of my financial statement for your review. I am committed to fulfilling my tax obligations and appreciate your consideration of my request.
Sincerely,
[Your Signature]
[Your Typed Name]
Sample Letter 2: Providing Additional Information Requested by the IRS
[Your Name]
[Your Address]
[Your City, State, Zip Code]
[Your Phone Number]
[Your Email Address]
[Date]
Internal Revenue Service
[Address provided on IRS Notice]
RE: Notice Number [Notice Number]
Tax Year: [Tax Year]
SSN/EIN: [Your SSN or EIN]
Dear Internal Revenue Service,
This letter is in response to your notice [Notice Number] dated [Date of IRS Notice] requesting additional information regarding [briefly describe the information requested, e.g., expenses claimed on Schedule C].
I have attached the following documents to support my claim: [List the documents you are providing, e.g., receipts, invoices, bank statements]. I believe these documents provide sufficient evidence to support the information reported on my tax return.
If you require any further information, please do not hesitate to contact me. I am available by phone at [Your Phone Number] or by email at [Your Email Address].
Sincerely,
[Your Signature]
[Your Typed Name]
Sample Letter 3: Disputing an IRS Assessment
[Your Name]
[Your Address]
[Your City, State, Zip Code]
[Your Phone Number]
[Your Email Address]
[Date]
Internal Revenue Service
[Address provided on IRS Notice]
RE: Notice Number [Notice Number]
Tax Year: [Tax Year]
SSN/EIN: [Your SSN or EIN]
Dear Internal Revenue Service,
I am writing to dispute the assessment outlined in your notice [Notice Number] dated [Date of IRS Notice] regarding my tax liability for the tax year [Tax Year]. I respectfully disagree with your assessment of $[Amount] because [Clearly explain the reason for your disagreement. Be specific and provide details. For example, “I believe the income reported on the 1099-MISC is incorrect because…” or “I have documentation to prove that the deductions I claimed are legitimate.”].
I have attached the following documentation to support my dispute: [List the supporting documentation: receipts, records, affidavits, etc.]
I request that you review this information and reconsider your assessment. If you have any questions or require additional information, please contact me at [Your Phone Number] or [Your Email Address].
Sincerely,
[Your Signature]
[Your Typed Name]
Sample Letter 4: Responding to an IRS Audit Notice
[Your Name]
[Your Address]
[Your City, State, Zip Code]
[Your Phone Number]
[Your Email Address]
[Date]
Internal Revenue Service
[Address provided on IRS Notice]
RE: Audit of Tax Year [Tax Year]
SSN/EIN: [Your SSN or EIN]
Control Number: [Control Number, if provided]
Dear Internal Revenue Service,
I am writing in response to your notice dated [Date of IRS Notice] regarding an audit of my tax return for the year [Tax Year]. I am available to cooperate fully with this audit.
I propose the following dates and times for the audit to take place: [Suggest specific dates and times, or indicate your general availability. If you prefer to handle the audit by mail, state that clearly.] I can provide all necessary documentation at that time.
If you require any documentation in advance, please specify what you need. I am prepared to provide all requested information promptly. [If you are represented by a tax professional, state their name and contact information here.]
Sincerely,
[Your Signature]
[Your Typed Name]
Sample Letter 5: Requesting a Tax Transcript
[Your Name]
[Your Address]
[Your City, State, Zip Code]
[Your Phone Number]
[Your Email Address]
[Date]
Internal Revenue Service
[Address provided on IRS Notice, if applicable, otherwise send to general IRS address]
RE: Request for Tax Transcript
SSN/EIN: [Your SSN or EIN]
Dear Internal Revenue Service,
I am writing to request a tax transcript for the following tax years: [List the specific tax years you need, e.g., 2020, 2021, and 2022].
I need this transcript for [Briefly explain why you need the transcript, e.g., “loan application,” “mortgage refinance,” “confirming income for verification purposes”].
Please send the transcript to my address listed above. Thank you for your assistance.
Sincerely,
[Your Signature]
[Your Typed Name]
Sample Letter 6: Requesting Penalty Abatement
[Your Name]
[Your Address]
[Your City, State, Zip Code]
[Your Phone Number]
[Your Email Address]
[Date]
Internal Revenue Service
[Address provided on IRS Notice]
RE: Notice Number [Notice Number]
Tax Year: [Tax Year]
SSN/EIN: [Your SSN or EIN]
Dear Internal Revenue Service,
I am writing to request an abatement of penalties assessed in notice [Notice Number] for the tax year [Tax Year]. The penalty assessed was for [Specify the type of penalty, e.g., “failure to file,” “failure to pay”] and amounts to $[Penalty Amount].
I believe that the penalty should be abated because [Provide a detailed explanation of the reason for your failure to file or pay on time. This should be due to reasonable cause, such as illness, death in the family, natural disaster, or other circumstances beyond your control. Include dates and supporting documentation where possible.]. I have attached [List any supporting documents, e.g., medical records, death certificate, insurance claim].
I understand the importance of filing and paying taxes on time, and I have since taken steps to ensure that this does not happen again. I respectfully request that you consider my circumstances and grant an abatement of the penalties.
Sincerely,
[Your Signature]
[Your Typed Name]
Sample Letter 7: Responding to a Notice of Intent to Levy
[Your Name]
[Your Address]
[Your City, State, Zip Code]
[Your Phone Number]
[Your Email Address]
[Date]
Internal Revenue Service
[Address provided on IRS Notice]
RE: Notice Number [Notice Number] – Notice of Intent to Levy
Tax Year: [Tax Year]
SSN/EIN: [Your SSN or EIN]
Dear Internal Revenue Service,
I am writing in response to your notice [Notice Number] dated [Date of IRS Notice] regarding your intent to levy my [Specify the asset they intend to levy, e.g., wages, bank account] for the tax year [Tax Year]. I understand the seriousness of this matter and want to resolve this outstanding tax liability.
I am currently [Explain your current situation. Choose ONE option that applies and elaborate: (a) unable to pay the full amount but can propose an installment agreement (b) able to pay the full amount within [number] days; (c) believe the amount is incorrect and am providing documentation (d) filing an appeal or seeking Offer in Compromise assistance ]. If option A, follow the example in sample letter 1. If option B, state you will provide a certified check/money order for $[Amount] payable to the US Treasury by [Date]. If Option C, follow the format in Sample Letter 3. If option D, indicate that you are working with [Tax Professional, Legal Aide] and are actively in the process of applying for relief.
I am committed to resolving this tax issue as quickly as possible and appreciate your understanding.
Sincerely,
[Your Signature]
[Your Typed Name]
Key Takeaways
Responding to IRS letters requires careful attention and a proactive approach. Use these sample letters as a foundation for crafting your own responses. Always tailor the letter to your specific circumstances and keep accurate records of all communication. If the situation is complex or you are unsure how to proceed, seek professional tax advice.