Dealing with the IRS can sometimes feel overwhelming, and receiving an IRS notice that you disagree with can add to that stress. Fortunately, you have options. One of the most effective ways to address a discrepancy or disagreement with an IRS decision is to formally request a reconsideration. This article will guide you through the process, explaining how to write a reconsideration letter to IRS effectively to present your case and seek a resolution.
Understanding Your Reconsideration Rights
When you receive a notice from the IRS that you believe is incorrect or unfair, your first step should be to carefully review the notice. Understand exactly what the IRS is stating and why they believe it's correct. This understanding is crucial before you even think about how to write a reconsideration letter to IRS. Your right to request a reconsideration is a vital part of the tax process, allowing you to provide additional information or clarify misunderstandings that may have led to the IRS's initial determination.
It is incredibly important to act promptly. Many IRS notices have deadlines for response or appeal, and missing these can limit your options. Gather all relevant documentation that supports your position. This might include receipts, bank statements, canceled checks, previous tax returns, or any other proof that contradicts the IRS's findings.
Here’s a breakdown of what you’ll generally need:
- The IRS Notice number and date.
- Your Social Security Number (SSN) or Employer Identification Number (EIN).
- A clear explanation of why you disagree.
- Supporting documents.
How to Write a Reconsideration Letter to IRS for a Math Error
Dear IRS,
I am writing to request a reconsideration of the notice I received dated [Date of Notice], Notice Number [Notice Number]. My Social Security Number is [Your SSN].
I believe there was a math error in the calculation of my tax liability. Specifically, the notice states [IRS's statement about the error], but my calculations show [Your calculation and explanation]. I have attached a corrected tax calculation for your review, along with copies of my original return and supporting documents.
I kindly ask that you re-examine this matter and adjust my tax liability accordingly. Thank you for your time and attention to this issue.
Sincerely,
[Your Name]
[Your Address]
[Your Phone Number]
[Your Email Address]
How to Write a Reconsideration Letter to IRS for Missed Income
Dear IRS,
I am writing in response to your notice dated [Date of Notice], Notice Number [Notice Number]. My Taxpayer Identification Number is [Your SSN/EIN].
The notice indicates that I failed to report certain income, specifically [Specific income mentioned in the notice]. I have reviewed my records and believe this is an oversight. The income in question was [Explain why it was missed, e.g., reported on a different form, incorrectly categorized]. I have attached documentation that shows this income was either reported correctly on another part of my return or should not have been included in taxable income for the year in question. [Attach relevant documents, e.g., Form 1099, corrected W-2, explanation of why it's not taxable].
I request that you reconsider this assessment based on the enclosed information. Please adjust my tax liability as needed.
Sincerely,
[Your Name]
[Your Address]
[Your Phone Number]
[Your Email Address]
How to Write a Reconsideration Letter to IRS for Incorrect Credits or Deductions
Dear IRS,
I am writing to request a reconsideration of Notice Number [Notice Number], dated [Date of Notice]. My SSN is [Your SSN].
The notice states that I incorrectly claimed [Specific credit or deduction] on my tax return. I believe I was eligible for this [credit/deduction] based on [Reason for eligibility, e.g., specific expenses, meeting qualifying criteria]. I have attached supporting documentation, including [List specific documents, e.g., receipts for education expenses, proof of charitable donations, medical bills], which demonstrates my eligibility.
Please review this information and reinstate the [credit/deduction]. Thank you for reconsidering my case.
Sincerely,
[Your Name]
[Your Address]
[Your Phone Number]
[Your Email Address]
How to Write a Reconsideration Letter to IRS for a Prior Year Error
Dear IRS,
I am writing to request a reconsideration of a previously assessed liability for the tax year ending [Year]. I received notice [Notice Number], dated [Date of Notice], which addresses [Briefly describe the issue]. My SSN is [Your SSN].
Upon reviewing this notice, I realized an error was made on my original return for [Year]. [Explain the error clearly, e.g., "I failed to report a dependent that I was eligible for," or "A specific deduction was overlooked."]. I have attached a Form 1040-X, Amended U.S. Individual Income Tax Return, along with all necessary supporting documentation that corrects this error and demonstrates the accurate tax liability.
I request that you process this amended return and adjust my tax liability accordingly. Thank you for your attention to this matter.
Sincerely,
[Your Name]
[Your Address]
[Your Phone Number]
[Your Email Address]
How to Write a Reconsideration Letter to IRS Regarding Penalty Abatement
Dear IRS,
I am writing to request a reconsideration and abatement of the penalties assessed in Notice Number [Notice Number], dated [Date of Notice]. My SSN is [Your SSN].
The penalties were assessed due to [Reason for penalty, e.g., late filing, late payment]. I understand the importance of timely compliance, but I experienced [Explain reasonable cause, e.g., a serious illness, a natural disaster, a death in the family, reliance on a tax preparer who made a mistake] during the period in question. I have attached documentation to support my request, such as [List supporting documents, e.g., doctor's notes, police reports, statements from financial institutions].
I have since [Describe steps taken to correct the issue, e.g., filed my return, made the payment] and have made every effort to rectify the situation. I kindly request that you waive these penalties due to these extenuating circumstances.
Sincerely,
[Your Name]
[Your Address]
[Your Phone Number]
[Your Email Address]
How to Write a Reconsideration Letter to IRS When You Paid the Amount Due
Dear IRS,
I am writing to request a reconsideration of Notice Number [Notice Number], dated [Date of Notice]. My SSN is [Your SSN].
This notice appears to indicate that I have an outstanding balance of [Amount stated in notice]. However, I paid this amount in full on [Date of Payment] via [Method of Payment, e.g., check, online payment]. I have attached a copy of my canceled check or payment confirmation as proof of payment.
I kindly request that you review your records and adjust my account to reflect this payment. Please confirm that this matter has been resolved.
Sincerely,
[Your Name]
[Your Address]
[Your Phone Number]
[Your Email Address]
How to Write a Reconsideration Letter to IRS After a Tax Audit
Dear IRS,
I am writing to request a reconsideration of the findings from my recent tax audit for the year [Tax Year], which resulted in Notice Number [Notice Number], dated [Date of Notice]. My SSN is [Your SSN].
While I respect the audit process, I believe there was a misunderstanding or misinterpretation of certain facts during the audit. Specifically, I disagree with the assessment regarding [Specific item in the audit findings]. I have re-examined the evidence and have additional documentation that I believe supports my original tax filing. This documentation includes [List new or clarifying documents, e.g., additional receipts, corrected statements, expert opinions].
I would appreciate the opportunity to present this new information for your review. Please advise on the next steps for submitting these documents and having my case reconsidered.
Sincerely,
[Your Name]
[Your Address]
[Your Phone Number]
[Your Email Address]
How to Write a Reconsideration Letter to IRS for an Incorrect Notice Issuance
Dear IRS,
I am writing to request a reconsideration of Notice Number [Notice Number], dated [Date of Notice]. My SSN is [Your SSN].
I believe this notice was issued in error. After reviewing my records and the notice itself, I found that [Explain the reason for error, e.g., "my tax liability was already satisfied through estimated tax payments," or "the notice pertains to a tax year for which I have already received a resolution," or "the notice was sent to the wrong taxpayer."]. I have attached [Relevant documentation, e.g., proof of estimated tax payments, previous correspondence, your tax ID confirmation] to support my claim that this notice should not have been issued.
I kindly ask that you investigate this matter and cancel the incorrect notice. Thank you for your prompt attention.
Sincerely,
[Your Name]
[Your Address]
[Your Phone Number]
[Your Email Address]
Writing a reconsideration letter to the IRS is a formal process that requires clarity, accuracy, and supporting evidence. By following the steps outlined and tailoring your letter to your specific situation, you increase your chances of a favorable outcome. Remember to stay organized, be polite but firm, and always keep copies of everything you send. Addressing tax discrepancies directly and professionally is key to resolving issues with the IRS and maintaining your peace of mind.