Very often all they are asking is for a few clarifications or indicating that you have overpaid in taxes. The easiest step to take is to ring the IRS at the telephone number given in the letter and request for elaborations/clarifications.
More often than not all you need to do is just follow the instructions given in the letter and send the reply with copies of documents they need under registered post or certified post. If this does not resolve the matter, seek the help of a CPA or tax lawyer who has experience in such matters.
Every letter from the IRS has a code: CP followed by a number. If you look up the I RS website they provide a list of codes and what each code means, see: http://www.irs.gov/individuals/article/0,,id=125104,00.html . The website is constantly updated. If the information you seek is not available use the IRS toll free number to resolve your queries. Or contact the IRS local office: http://www.irs.gov/localcontacts/index.html.
The IRS has created elaborate codes for individual filers pertaining to forms 1040, 1040A, 1040EZ. Examples are:
Similarly the IRS has created codes for business tax filers. These pertain to forms 1040,1040A, 1040EZ and so on. Examples of their codes are:
When a person receives an IRS notice all he or she needs to do is action on the notice based on the code indicated. This means you need to only address the matter pointed out and not run helter skelter trying to unravel the whole return. Be specific and quick and solve the problem systematically.
Barry Allen is a freelance writer for Online Tax Firm, the premier website to find tax, return tax, tax software, free tax filing, sales tax, services tax,income tax, property tax and many more.