No taxpayer wants to hear from the IRS unless it involves a refund, and they don't want to have to reach out to you, either. So, the agency shared tips on how to avoid getting a dreaded letter from the tax man.
. He said the best thing taxpayers can do is file a return that’s correct and complete, explaining, "When your return is right to start with, the chances that you’ll hear from the IRS go way down—and that’s good news for both you and the IRS."Smith warns there are stiff penalties for not filing or for filing late, especially if you owe taxes.Check W-2s, 1099s and other year-end statements to make sure they are, or seem, correct.
If you answer yes, be sure to report any related income, be it in connection with sales of these assets or payments for services as an employee or in connection with a business.Most families received advance payments of the Child Tax Credit during the last half of 2021. In most cases, these payments covered half of your eligible credit. When you file now, you can claim the rest, or get the whole thing if you qualify but didn’t get any advance payments.
A few weeks ago, the IRS sent recipients a letter telling them how much they received. Use the information in that letter to fill out your return. If you disagree with the amount shown, contact the IRS at the number listed in the letter to see about getting it corrected. "We’d rather hear from you before you file, rather than after," Smith said. "Listing the wrong amount for your advance payment will likely delay the processing of your return.
You will want to accurately notate a qualified charitable distribution on your return. Senior citizens receiving required IRA distributions often take advantage of the option to have some or all of it contributed directly, by the payer, to a qualified charity, but then fail to properly notate this QCD on their return on Line 4b. This can easily result in follow-up correspondence, often through the document-matching process, Smith said.
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