(PresidentialHill.com)- The Internal Revenue Service might be sending you a letter in the near future, and if you get one, you definitely shouldn’t ignore it.
A CNBC report said that the IRS typically sends letters during the spring, even after the deadline to file annual taxes has passed. Most of the time, the letters are just requesting you to send the IRS more information to either verify your identity or verify some of the information that was on your tax return.
If you don’t reply to the letter, it’s possible that your tax return — if you’re getting one at all — could be delayed for months. It’s even possible that your return will go completely unclaimed.
Sometimes, the IRS sends what they call an adjustment letter. This is a letter that would notify you that your tax refund amount has changed, or that you owe more or less money than you had initially expected.
Most of the time, these letters are sent because incorrect information was included when you filed your taxes.
In addition to notifying you of the adjustment in your tax return, or how much you owe in taxes, the letters will provide you with instructions on how you can pay the taxes you might owe. It’ll also give you directions for how you can dispute the claim if you believe that the IRS made a mistake when they were doing their calculations.
If you receive one of these letters, the first thing you should do is not panic. They aren’t a legal notice or even a notification that you’re getting audited. It’s even possible that some letters could include a check for a tax refund you may not have been expecting, because of an adjustment the agency made.
Either way, it’s very important that you don’t ignore this letter if you receive one. You need to take action that the IRS is requesting, as they can charge interest and late penalties if you go a certain period of time without paying them money you owe. Or, if you are due a refund, you could be delaying your receipt of it by not responding.
If you do owe money, the IRS offers payment plans so you can pay what you owe over time, rather than all in one lump sum.
It’s also advisable that if you receive one of these letters from the IRS, you keep it in a safe place. The IRS itself recommends taxpayers keep all tax records for at least three years after the day they filed their tax return. This would include any original documents submitted with the return, along with any notices the agency sent you.
You can use these letters when you’re filing the taxes as a reference point, or as proof if they come knocking on your door down the line for money you already paid. The letters can serve as proof if there’s ever a dispute over your taxes in the future.
