IRS Letter 4464C: How Long Does It Take to Process?
Understand the processing timeline for IRS Letter 4464C and the factors that may influence the duration of your tax review.
Receiving IRS Letter 4464C can be concerning for taxpayers, as it indicates the IRS is reviewing their tax return. This letter is part of the agency’s efforts to ensure accuracy and maintain the integrity of the tax system.
Understanding the letter and the potential timeline for resolution is important for taxpayers awaiting refunds or outcomes.
Typical Processing Time
The processing time for IRS Letter 4464C depends on the complexity of the tax return. Typically, the review process takes 45 to 180 days. Factors such as the IRS’s workload, the details of the return, and the need for additional documentation can influence the timeline. Automated systems and manual checks are used to verify accuracy, which may lead to delays, particularly during peak tax season. If discrepancies arise, the process may take longer, requiring taxpayers to remain patient and, if necessary, communicate with the IRS.
Factors That Affect Timing
Several elements can impact the duration of an IRS review after receiving Letter 4464C.
Validation Checks
The IRS uses automated systems and manual reviews to confirm the information on tax returns. Automated systems cross-reference taxpayer data with third-party forms like W-2s and 1099s. If inconsistencies are found, the return may require manual review, which can take longer. For example, claims involving significant deductions, such as charitable contributions under Internal Revenue Code (IRC) Section 170, may prompt a request for additional documentation.
Refund Size
Larger refunds often face closer scrutiny, as they may signal errors or fraudulent claims. Refunds involving credits like the Earned Income Tax Credit (EITC) or the Additional Child Tax Credit (ACTC) are subject to additional verification under the Protecting Americans from Tax Hikes (PATH) Act of 2015, which prevents these refunds from being issued before mid-February. Taxpayers claiming substantial refunds should ensure all supporting documents are readily available to avoid delays.
Past Filing History
A taxpayer’s filing history can affect the review process. Consistent and accurate filing in prior years may expedite the process, while a history of errors, late filings, or audits may lead to more in-depth scrutiny. For example, if a taxpayer was previously audited for underreporting income, the IRS may take extra time to verify the current return. Seeking professional assistance can help ensure accuracy and completeness for those with past filing issues.
Whether Follow-Up Is Needed
IRS Letter 4464C generally serves as a notification of a review and does not typically require immediate action. Taxpayers should carefully read the letter to determine if further documentation is requested. If the IRS requires additional forms or clarification, responding promptly is crucial to avoid delays. While the IRS will usually reach out if more information is needed, taxpayers can proactively contact the agency or use online tools to check the review’s status.
Possible Results After Review
The outcome of an IRS review following Letter 4464C varies. In some cases, the IRS may confirm the accuracy of the original return, and any pending refund will be issued, provided there are no other holds.
Alternatively, the review may identify discrepancies that require adjustments to the return, which could result in an increased or decreased tax liability. For instance, unreported income or disallowed deductions may lead to additional taxes, interest, and penalties under IRC Section 6651. Conversely, if the review determines eligibility for additional credits or deductions, the taxpayer could receive a larger refund than expected. Keeping detailed records and documentation is essential to support all claims made on the return.