The IRS is not well known for stellar communication, specifically when it comes to issuing IRS notices or communications.
Historically, the agency has relied, for the most part, on written notices sent through the United States Postal Service (USPS) to let taxpayers or their representatives know there may be an issue. Those notices may be sent to you or your tax preparer if:
- There is a balance due on your taxes for the year.
- You are due a larger or smaller tax refund.
- The agency has a question regarding your tax return.
- The agency must verify your identity or need additional information to process your tax return.
- There has been some delay in processing your tax return.
While the IRS has detailed instructions about what to do if you receive a notice, it can be challenging to get in touch with the agency if you have questions or believe you received the notice in error. In addition, the proliferation of IRS scams means that many individuals be wary of responding to a notice without being able to talk to an IRS agent first.
The good news is that the IRS has heard these concerns and is adopting new technologies to help taxpayers get the information they need to respond appropriately. They implemented a Taxpayer Digital Communications (TDC) system in 2020 – and are working to further expand its capabilities to make it easier for taxpayers to communicate with the agency to answer questions and resolve tax-related issues.
The Ability to Respond Online
In early 2023, the IRS announced that the agency had implemented secure digital correspondence capabilities allowing taxpayers to respond online to nine types of notices and upload related documents directly to the agency through a secure document upload tool. Those notices include:
- CP04, relating to combat zone status.
- CP05A, information request related to a refund.
- CP06 and CP06A, relating to the Premium Tax Credit.
- CP08, relating to the Child Tax Credit.
- CP09, relating to claiming the Earned Income Tax Credit (EITC).
- CP75, relating to the EITC.
- CP75a, relating to the EITC.
- CP75d, relating to the EITC and other credits.
Further Improvements on the Way
The IRS has said it will continue to expand digital correspondence over the next few years, making it easier for taxpayers and their representatives to open dialogues.
But while it may be easier for you to communicate with the IRS with these new online tools, you may not always fully understand what they need to resolve a tax issue. If you are unsure of what is required, what the IRS notice is requesting, or if you even need to answer the IRS notice, rely on the experts: the Highland Tax Group. If you receive an IRS notice, even digitally, they can help advise you on the best way to deal with it.