So, the IRS Contacted You
Before taking any action, determine whether the contact is actually from the IRS.
The IRS never uses social media or text messages to reach out to taxpayers. The IRS will NEVER call you until they have sent a letter or notice to your home or business. The IRS initiates most contacts via regular mail delivered by the United States Postal Service.
There are a few circumstances in which the IRS will call or visit a taxpayer’s home. These include an overdue tax bill or an unfiled tax return. However, the taxpayer will have already received several notices from the IRS In the mail.
The notice will explain why the IRS is contacting you and give you instructions for how to handle the issue. All notices from the IRS will have a Notice (CP) number or a Letter (LTR) number on either the top or the bottom right-hand corner of the correspondence.
The IRS sends notices and letters for the following reasons:
- You have a balance due.
- You are due a larger or smaller refund.
- They have a question about your tax return.
- They need to verify your identity.
- They need additional information.
- They changed your return.
- They need to notify you of delays in processing your return.
All of the information you will need to respond correctly to the notice is contained in the notice. If the letter states that the IRS changed your tax return, compare the information in the notice with the information in your original return.
The notice will most likely request a response by a specific date. It is important to respond by this date to 1) minimize additional interest and penalties and 2) preserve your right to appeal if you don’t agree.
The letter will also state the reply method the IRS prefers for you to use, for example, mail or fax. You only need to respond if you do not agree with changes made to your return, if the IRS requested additional information or if you have a balance due.
If it turns out that you owe money, pay as soon and as much as you can, even if it is not the full amount owed. Again, this will reduce the interest and penalties applied to your balance.
Always keep a copy in your tax files of the IRS notice or letter along with your response and any documentation you used.
In some cases, it may be best to call the IRS to get started on resolving the issue as soon as possible. The contact number is on the top right corner of the notice or letter. It is 800-829-1040.
Other reasons it might be worth a call to the IRS:
- You’re going to miss an IRS deadline and need to request more time (to pay off a tax balance, send information, or respond to an IRS notice).
- The “Where’s My Refund?” tool tells you to call.
- You need your tax payoff amount.
- You have questions about your IRS payment plan (called an installment agreement).
- You want to know the status of any IRS action (like a penalty abatement request, a payment correction, etc.)
- You want to make sure the IRS received your payment.
- You lost or never received your Form W-2 and/or Form 1099-R – or you got an incorrect one.
Of course, if you’re going to venture a call to the IRS, you want to speak to an actual person. Here is how to get through to a representative. Note that representatives are available Monday through Friday from 7 a.m. to 7 p.m. local time. The best time to call is first thing in the morning.
Be prepared. The IRS needs to verify your identity before discussing any personal information.
You should have at hand:
- Social Security numbers and birth dates for those who were on the return you are calling about.
- An Individual Taxpayer Identification Number (ITIN) letter if you don’t have a Social Security number (SSN)
- Filing status – Single, Head of Household, Married Filing Joint or Married Filing Separate
- Your prior-year tax return.
- A copy of the tax return you’re calling about
- Any letters or notices the IRS sent you
- Additional information and authorizations are needed if you are calling for somebody else.
Write down your questions ahead of time.
To begin, call 800-829-1040.
The first question the automated system will ask you is to choose your language.
Once you’ve set your language, choose option 2 for “Personal Income Tax”.
Next, press 1 for “form, tax history, or payment”.
Next, press 3 “for all other questions.”
Next, press 2 “for all other questions.”
When the system asks you to enter your SSN or EIN to access your account information, do NOT enter anything.
After it asks twice, you will be prompted with another menu.
Press 2 for personal or individual tax questions.
Finally, press 3 for all other inquiries. The system should then transfer you to an agent.
Once you are on the phone with a representative, remember to be courteous.
The IRS representatives are people just like us who are trying to do their jobs to the best of their ability. And, like every business in America, the IRS is short-staffed. The representatives have to pay taxes and follow the same laws that we do.
You should write down all the answers you get in as much detail as possible.
Set a deadline with the IRS if they need to take action. Follow up with the IRS if it doesn’t happen.
Record the IRS representative’s name and badge number in case you have to reference the call later.
Note that telephone wait times from January to April average 29 minutes. Wait times are longer on Monday and Tuesday and around holidays and the April tax filing deadline.
Wait times are even longer post-filing season because there are fewer representatives working at that time.
Know before you pick up the phone that the IRS has advised taxpayers that processing refunds takes about three weeks for returns filed online, and up to eight months for paper returns—including those in backlogs from previous tax years.
Due to the increase in the number of calls in the last few years and the above-mentioned staffing issues, the IRS has begun to roll out the use of voice and chat bots. The goal is to increase self-service capabilities for general taxpayer inquiries so that people with more complex issues can get through more quickly to live assistors on the phone. From the start of the program in 2021 through August 2022, the bots handled over 5.6 million calls, all without having to wait on hold! In contrast, in 2022, only 13 percent of 173 million calls reached a live IRS representative.
Automating some responses is one way that the IRS is making taxpayer service a top priority. Let’s wait to see how this plays out.
"The hardest thing to understand in the world is the income tax." Albert Einstein
Please feel free to call (215-836-4880) or email the office (ellend@regardingyourmoney.com) to set up an appointment to discuss any investment or tax questions you may have. We promise not to keep you on hold!
Sources: Amy Northard, CPA, IRS.Gov, Darren Guillot, IRS Small Business/Self-Employed Deputy Commissioner, NYT