Why Did I Get a Letter From the NYS Tax Department?

Receiving a letter from the New York State Department of Taxation and Finance indicates a matter concerning your tax account requires attention. These communications are a standard part of the tax administration process and are sent for numerous reasons. A letter does not automatically imply you have made a mistake; it is the primary way the department communicates with taxpayers about their accounts.

Common Reasons for Receiving a Tax Notice

A frequent reason for receiving a notice is a mathematical error on your tax return, such as incorrectly adding or subtracting lines. The notice will show the department’s correction and any resulting change in your tax refund or amount owed.

Another cause for a notice is underreported income. The department compares the income you reported against information provided by employers and financial institutions. If their records show you received more income than you reported, they will send a letter proposing an adjustment and specifying the source of the unreported income.

The department also sends letters to request more information or to verify details on your return. Form DTF-948, the Request for Information, may ask for documentation to confirm eligibility for certain tax credits or deductions. This is part of the department’s effort to combat tax fraud by ensuring the person filing the return is the legitimate taxpayer.

You might also receive a notice informing you of changes to your tax refund. The notice will detail why your refund amount was changed. For instance, the department may have identified an outstanding debt you owe to another state agency and is required by law to use your refund to offset that liability.

Finally, a letter could be a notice of an audit. Being selected for an audit does not mean you have done anything wrong. These examinations can range from a correspondence audit, handled by mail, to a more comprehensive field audit where an examiner reviews your financial records in person.

Analyzing the Notice and Verifying Its Authenticity

Upon receiving a letter, read it carefully to understand its purpose. The notice number identifies the specific type of letter, while the notice will also list the date, the tax year in question, any proposed change to your tax liability, and the response deadline. The notice will explain why it was sent and include instructions on how to make a payment if a balance is due.

Verifying the Notice

Confirm that the letter is genuinely from the NYS Department of Taxation and Finance and not a scam. Check the contact information on the letter and compare it to the official phone numbers and addresses listed on the department’s website at www.tax.ny.gov.

Official correspondence will include specific details about your tax account and will not ask for personal information like your Social Security number via email. The department initiates contact through postal mail, so be wary of communications that create a false sense of urgency or threaten legal action.

Preparing Your Response Package

After analyzing the notice, gather the necessary documentation to support your position. Begin by making a copy of the notice itself to include with your submission.

If the notice concerns a mathematical error, you will need a copy of the notice and your original tax return to check your calculations against the department’s corrections. For underreported income, you will need the notice, your original return, and copies of the income documents in question, such as a W-2 or Form 1099-MISC.

When responding to a request for information, the required documents will be listed in the notice. To prove eligibility for a dependent credit, you might need to provide birth certificates or school records. For a property tax credit, you may need to supply proof of rent paid or property tax bills.

If you are facing an audit, the notice will specify the records to be examined. This could include bank statements, receipts, ledgers, and legal documents related to the items under review. Organizing these records chronologically and by category will facilitate the examination process.

Methods for Submitting Your Response

Once your response package is complete, you have several options for submitting it. The fastest method is to respond online through the NYS Department of Taxation and Finance’s Online Services portal, where you can view notices and upload documents directly.

Responding by mail is another option, and the correct mailing address will be on the notice. Use a mailing service that provides tracking and proof of delivery, such as certified mail. This creates a record of when you sent the response and when the department received it.

Responding by phone may be appropriate for simple inquiries or to clarify a point in the notice. Before calling, have your notice number, Social Security number, and a copy of your tax return available to help the representative access your account information.