Over the previous few weeks, an untold variety of taxpayers have been confused by the arrival of not one however two letters from the Inner Income Service.
The primary letter (CP 11, CP 12, or CP 13) notified taxpayers that the IRS had made adjustments to their tax returns. Due to these adjustments, the taxpayer both owes cash, is due a refund (or their refund quantity modified), or now has a stability of zero.
Thus far, so good, proper?
Nonetheless, the confusion for a lot of started with the arrival of a second discover (letter 6470), which referenced the primary letter, notified recipients they’d a proper to attraction the primary letter, after which apologized for not mentioning the attraction half the primary time round. These second letters started arriving in individuals’s mailboxes not too long ago, main many taxpayers to invest on social media and in Fb teams whether or not they is perhaps a scam.
They’re not a scam. As we wrote in early August, the IRS had beforehand despatched out about 5 million defective “math error notices” that uncared for to tell taxpayers of their proper to attraction. Particularly, these notices have been despatched to individuals who claimed the recovery rebate credit—that’s the credit score that permits you to declare your stimulus checks when you have been eligible however by no means obtained one. Within the overwhelming majority of circumstances, the maths error notices have been seemingly informing folks that they weren’t eligible for a restoration rebate that they’d tried to say, or that the rebate quantity can be smaller.
However as a result of the maths error notices didn’t inform taxpayers of their full authorized rights, the IRS needed to mainly eat crow and resend letters to each single a kind of individuals, notifying them of their proper to attraction, and apologizing for the omission. That’s what letter 6470 is all about.
It’s essential to notice, nevertheless, that the unique math error notices have been not invalidated due to the omission. In different phrases, when you really did make a miscalculation in your tax return—and also you’re not really eligible for a restoration rebate credit score—responding to letter 6470 isn’t going to make a distinction. In truth, the letter clearly states, “If you happen to agree with the adjustments we made, you don’t have to take additional motion.”
If you happen to’ve double checked your math and nonetheless consider you’re entitled to the credit score, you must attraction inside 60 days, however you’ll very seemingly have to offer documentation to show your eligibility. The most effective factor to do is name the quantity offered on the letter and begin there.
You possibly can be taught extra about letter 6470 here. Good luck!