What Is IRS Letter 3064C and How Should You Respond?

Receiving a letter from the IRS can be unsettling, especially if you’re unsure why it was sent. IRS Letter 3064C typically involves missing or incorrect information related to your tax account. Ignoring it could lead to complications, so understanding how to respond is essential.

Reason for Issuance

IRS Letter 3064C is issued when the agency identifies discrepancies or needs clarification regarding a taxpayer’s account. This often stems from unreported income, incorrect filing status, or inconsistencies in tax credits or deductions. The IRS cross-references tax returns with third-party data, such as W-2s and 1099s. If something doesn’t align, they request further details or corrections.

A common trigger is a mismatch between reported income and IRS records. For example, failing to report a 1099-NEC for freelance work can prompt an inquiry. Similarly, incorrect information from an employer or financial institution can lead to a review. Issues may also arise with tax credits, such as the Earned Income Tax Credit (EITC) or Child Tax Credit (CTC), if eligibility requirements appear unmet.

Required Information

To respond, taxpayers must provide documents verifying their tax return’s accuracy. The IRS may request W-2s, 1099s, or other income statements. If deductions or credits are in question, supporting documents like receipts, bank statements, or official letters may be necessary. Ensuring these records match the original filing helps prevent further disputes.

Beyond income verification, taxpayers may need to explain specific transactions. If a deduction is questioned, a breakdown of expenses with invoices or contracts can substantiate the claim. Business owners may need to provide profit and loss statements or bookkeeping records. If a return was amended, including copies of those filings is important.

In some cases, the IRS may request a signed statement affirming the accuracy of the provided information. This should reference the issue outlined in the letter and include any necessary corrections. If adjustments are required, filing an amended return using Form 1040-X may be necessary.

Communication with the Agency

Responding promptly is crucial, as the letter includes a deadline. Missing it can lead to penalties or further scrutiny. Mailing a reply well before the deadline allows time for follow-up if needed. If more time is required, requesting an extension is possible but not guaranteed.

A well-organized response should include a cover letter summarizing the issue, referencing the notice number, and listing enclosed documents. Clearly labeling each document and explaining how it addresses the IRS’s concerns can reduce further inquiries. If the taxpayer agrees with an adjustment, acknowledging the correction and paying any balance due promptly can prevent interest from accruing. Payments can be made online, by phone, or via check.

For those who disagree with the IRS’s findings, formal dispute options exist. Submitting a written explanation with supporting evidence may lead to reconsideration. If the issue remains unresolved, filing an appeal through the IRS Office of Appeals is an option, following the procedures in IRS Publication 5. Seeking professional help from a tax attorney or enrolled agent may be beneficial for complex cases.