What to do if you disagree with the IRS tax notice

If you disagree with an IRS notice, you usually need to respond in writing. If the issue is a simple correction, you may be able to call them at the phone number on the notice and get it resolved over the phone. If the issue is more complicated or if you didn't get anywhere with the agent on the phone, you should put your disagreement in writing.

Keep your letter to the IRS short, simple, and to the point. The letter shouldn't be longer than a page. A half page is even better. Your letter should contain the following information:

• Your name, address, social security number, and the tax form and year of the tax return in dispute.
• Write a brief paragraph explaining the type of mistake the IRS made.
• Write a brief paragraph explaining the action you want the IRS to take to correct the problem.
• You should probably provide a daytime phone number where they can call you for further information.
• Attach a copy of the notice and a copy of any documents such as canceled checks, W-2 or 1099 forms that support your position. Do NOT mail them original documents in case they lose them. Make a photocopy of all documents you mail to the IRS.

Mail the letter to the IRS address listed on the notice. You want to make it easy for the agent reading the letter to understand what the problem is and what steps should be taken to correct the problem.

Here is a sample letter responding to an IRS notice.

Internal Revenue Service
P.O. Box XXXX
Whatever City, CA XXXXX

Re: Notice CP-2000 for John Doe

From: John Doe
100 Main Street
Your City, State, Zip Code
SSN: XXX-XX-XXXX

July 25, 20xx

Dear IRS:

On July 19, 20xx, I received a notice CP-2000 claiming that I failed to report $2,000 in dividend income on my 20xx tax return.

Please be advised that your notice (copy enclosed) is not correct. The dividend income is from my tax-exempt pension account and should not be included on my tax return. I have enclosed a copy of my year end 401(K) statement showing the $2,000 in dividend income belongs to a tax-exempt pension account.

Please adjust your notice to show that no additional tax is due.

If you need any further information, I can be reached at XXX-XXX-XXXX during daytime hours.

Thank you,

John Doe

Enclosed: IRS Notice CP-2000; 401(K) Year End Statement