Why Is the IRS Saying My Information Doesn’t Match and What Should I Do?
As tax season approaches, taxpayers across the United States are preparing to file their annual returns. However, many individuals may be surprised to receive a notice from the Internal Revenue Service (IRS) stating that their information does not match what the agency has on file. This can cause concern, confusion and even panic for the affected individuals. In this article, we explore why the IRS may be saying your information doesn’t match and what steps you should take to resolve this issue.
What Does It Mean When the IRS Says Your Information Doesn’t Match?
When the IRS detects a discrepancy between the income or deduction information reported on your tax return against the data reported to them by other parties, they will flag your return for further review. This can happen for several reasons:
• There may be a mismatch in your Social Security number (SSN), name or date of birth.
• Your employer(s) may have reported incorrect or incomplete information about your income.
• You may have forgotten to report income from a secondary job, freelance work or investment income.
• The IRS may have erroneous information in its system.
Whatever the reason, the issue needs to be resolved to avoid potential penalties and/or interest charges.
What Should You Do if You Receive a Notice from the IRS?
If you receive a notice from the IRS stating that your information does not match, the first step is to carefully review the notice and make sure you understand what is being requested. Generally, you will have 30 days to respond to the notice. You should act promptly and follow the instructions provided in the notice to avoid any potential further consequences.
If you realize that there is an error in your return, you should file an amended return as soon as possible. This will help you to correct the issue quickly and minimize any potential fines or charges.
If you believe that the notice is in error, you should contact the IRS to correct the issue. You may be asked to provide additional documentation to prove the accuracy of your return, such as W-2 forms, 1099 forms, or tax statements. Make sure that you keep a record of all communications with the IRS, including dates, times, and the names of any representatives you spoke with.
How Can You Avoid a Mismatch in Your Information?
To avoid receiving a notice from the IRS regarding a mismatch in your information, it is important to be diligent in reviewing your documentation before filing your taxes. Make sure that your name, SSN and date of birth match the records filed by your employer(s) and any other entities reporting your financial information. Additionally, be sure to accurately report all of your income, including any from freelance work, side jobs or investments.
Conclusion
Receiving a notice from the IRS regarding a mismatch in your information can be stressful and confusing. However, it is important to address the issue promptly and take the necessary steps to correct any errors. By following the instructions in the notice and being diligent in your reporting, you can avoid potential penalties, fees or charges and ensure that your tax return is accurate and complete.
