What Is IRS Form 13873-E and Why Did You Receive It?
Understand IRS Form 13873-E, its purpose, and the steps to take if you receive it, ensuring compliance and clarity in your tax matters.
IRS Form 13873-E is a communication tool used by the Internal Revenue Service to address specific tax-related issues with taxpayers. Receiving this form often indicates that the IRS requires further information or clarification regarding your tax filings.
Common Triggers for Receiving the Form
Receiving IRS Form 13873-E typically stems from discrepancies in your tax filings. A frequent cause is underreporting income, where the income reported on your tax return does not match the information the IRS has from third-party sources, such as W-2s or 1099s.
Another trigger involves deductions or credits claimed on your return. If the IRS identifies inconsistencies or requires additional proof for deductions like business expenses or charitable contributions, they may issue Form 13873-E. For example, claiming a significant deduction for home office expenses might prompt the IRS to request more detailed records to ensure compliance with tax regulations.
Discrepancies in filing status or dependency claims can also lead to this form. Taxpayers undergoing life changes, such as marriage, divorce, or the birth of a child, may see their filing status or exemptions come under review if the IRS has conflicting information.
Required Details and Documentation
Responding to IRS Form 13873-E requires gathering appropriate documentation to address the IRS’s concerns. Start by reviewing your tax return and supporting documents to identify any discrepancies. This includes verifying income statements like W-2s and 1099s to ensure all income has been reported accurately.
If your deductions or credits are under review, prepare to provide detailed records that substantiate your claims. For business-related expenses, maintain receipts, invoices, and logs. For charitable contributions, acknowledgment letters from recipient organizations are essential to verify the amounts claimed.
Changes in personal circumstances, such as marriage, divorce, or new dependents, may also require documentation. Marriage certificates, divorce decrees, or birth certificates can help substantiate changes in filing status or dependency claims, ensuring a smoother resolution process.
Filing and Submission Steps
Handling IRS Form 13873-E requires a systematic approach. Begin by thoroughly reviewing the form to understand what information the IRS is requesting. This will help you focus on gathering the relevant documents. Consulting IRS guidelines or a tax professional may ensure compliance with current laws and regulations.
Organize your documentation carefully, creating a checklist to ensure nothing is overlooked. Timely submission is critical to avoid penalties or further scrutiny. Retain copies of all documents submitted, as they may be useful if additional inquiries arise.
When submitting your response, select the appropriate delivery method. Electronic submission is often the fastest and most secure option, but if you choose to mail your response, use certified mail with a return receipt to confirm delivery. This provides tangible proof of compliance.
Possible Follow-Up from the IRS
After submitting your response, the IRS may follow up if additional clarification or documentation is needed. If your initial submission raises further questions or is incomplete, you may receive another notice requesting more details.
While receiving Form 13873-E does not automatically trigger an audit, it can signal heightened scrutiny of your return. Familiarizing yourself with the IRS audit process and your rights as a taxpayer can help you prepare for any further steps. Knowing what to expect and having organized records can make addressing follow-ups more manageable.