What to Do If the IRS Says Your Information Doesn’t Match
It’s not uncommon for taxpayers to receive a notice from the Internal Revenue Service (IRS) stating that their reported income on their tax return doesn’t match the income reported by their employers or other payers. This can be a confusing and stressful situation, but there are steps you can take to resolve the issue and avoid potential penalties.
What Does the Notice Mean?
The notice you receive from the IRS will specify which tax year and which form or schedule the mismatched information pertains to. It’s important to carefully review both your tax return and the notice from the IRS to determine the source of the discrepancy. Sometimes it can be a simple error, such as a typo or an omission on your part. Other times, it could be a more complicated issue such as identity theft or a fraudulent tax return claiming your Social Security number.
Respond Promptly
It’s important to respond promptly to the IRS notice, usually within 30 days. This will help prevent the mismatch from snowballing into a more significant issue. Depending on the reason for the discrepancy, your response to the IRS may include any number of documents, such as additional forms, W-2s, 1099s, or other evidence to support your claimed income.
Request an Amended Return
If you discover that you have made an error on your tax return, such as a mistake in reporting your income or deductions, you can request an amended return. An amended return allows you to correct any errors on your original return and prevent any further scrutiny from the IRS.
Be Prepared for an Audit
In some cases, your response to the IRS may result in an audit. An audit involves a more in-depth review of your tax return and financial records to determine whether you correctly reported your income, deductions, and credits. It’s important to be prepared for an audit by organizing your financial records and receipts and ensuring that you have all the necessary documentation to support your claimed income and deductions.
Seek Professional Help
If you’re unsure about how to respond to an IRS notice or an audit, it may be helpful to seek professional tax help. A tax professional can review your tax return and your notice from the IRS and help you develop a strategy for responding to the notice and resolving the mismatch. They can also represent you during an audit and help ensure that you comply with the IRS’s requests.
Conclusion
Receiving an IRS notice stating that your information doesn’t match can be concerning, but it’s important to remember that there are steps you can take to resolve the issue. Respond promptly, review your tax return and the notice from the IRS carefully, and seek professional help if necessary. By taking these steps, you can avoid potential penalties and ensure that your tax return is accurate and compliant with IRS regulations.
