Why Did I Receive IRS Letter 2645C and What Should I Do?

Receiving an unexpected letter from the IRS can be unsettling. Letter 2645C often raises questions for taxpayers due to its implications and the actions it requires. This correspondence is typically sent when there are specific issues related to a tax return that need resolution.

Reasons the IRS Sends Letter 2645C

When you receive IRS Letter 2645C, it signals that the IRS has concerns requiring clarification or additional information about your tax return. These issues may involve verifying your identity, resolving discrepancies, or providing supporting documentation. The letter outlines the steps taxpayers need to follow to address these concerns.

Identity Verification

Identity verification has become a critical part of the tax filing process due to the increase in identity theft and fraudulent returns. Letter 2645C ensures the tax return information matches the taxpayer’s identity. This process may involve confirming your identity through the IRS Identity Verification Service online or by phone. You’ll need to provide personal information, such as your Social Security number and details from your tax return. Promptly completing this step prevents delays in processing your return or issuing refunds. If you suspect identity theft, you can request an Identity Protection PIN (IP PIN) from the IRS to safeguard future filings.

Filing Discrepancies

Filing discrepancies occur when the information on your tax return does not match IRS records. These discrepancies may involve mismatched income details from Form W-2 or 1099, or inconsistencies in deductions or credits. For example, if the income you reported differs from what your employer submitted, the IRS will request clarification. Resolving these issues typically involves reviewing your tax documents and possibly amending your return. Cross-checking your records against IRS data and communicating promptly can help resolve these discrepancies efficiently, minimizing penalties or interest accrual.

Supporting Documentation

The IRS may request supporting documentation to substantiate claims made on your tax return, such as deductions, exemptions, or credits. For instance, if you claimed a significant charitable contribution, the IRS might ask for receipts or acknowledgment letters from the charity. The letter will specify the required documentation and the deadline for submission. Keeping well-organized records throughout the year simplifies this process. Consulting a tax professional can also clarify what documentation is needed and assist in preparing your response.

Confirming the Letter’s Authenticity

Ensuring the authenticity of Letter 2645C is crucial, given the rise in scams targeting taxpayers. The IRS sends letters only through the U.S. Postal Service, never via email or phone. Authentic letters include your taxpayer identification number (typically the last four digits of your Social Security number) and an IRS contact number.

Check the letterhead for the IRS logo, notice number, and barcode. The notice number, located in the upper right corner, corresponds to specific types of IRS correspondence and can be verified on the IRS website. Confirming these details can provide peace of mind and help you avoid falling victim to scams.

Complying With IRS Requirements

Addressing the requirements outlined in Letter 2645C involves providing accurate and complete information. Carefully review the letter to understand what the IRS needs and note any deadlines. Missing deadlines can lead to penalties or further complications.

Organize your records to ensure all requested documents are complete and error-free. If explanations are required for specific items, such as unusual deductions, provide clear and concise justifications. Using a spreadsheet to track the requested information and your responses can help you stay organized and avoid oversights.

Effects on Refunds or Balances

Receiving Letter 2645C can delay tax refunds or impact balances owed. The IRS often halts processing your return until the requested information is reviewed. For those relying on a timely refund, this delay can be frustrating. Depending on the complexity of the issue and how quickly you respond, resolution may take weeks or months.

If the IRS finds discrepancies that increase your taxable income, you may owe additional taxes. This could reduce your refund or create a balance due, potentially subject to interest and penalties. Understanding these possible outcomes can help you prepare for any financial adjustments.

Follow-Up With the IRS

After submitting the required documentation, monitor the status of your case. The IRS typically provides an estimated processing timeframe, but delays can occur depending on the complexity of the issue. Keep all correspondence and reference numbers related to your case for easy follow-up.

If the IRS does not respond within the expected timeframe or you need clarification, contact the agency using the information provided in the letter. Document all interactions, including dates, times, and the names of representatives you speak with. This record-keeping can help you stay organized and address ongoing issues effectively. Working with a tax professional can also provide valuable guidance and support in navigating IRS procedures.