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IRS credit letter

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(WOIO) -

It is not too uncommon for a taxpayer claiming a tax credit (especially the larger credits, like the Adoption Credit and First-Time Homebuyer Credit) to be requested to submit additional documentation to substantiate the claim to the credit. 

When a taxpayer is uncertain of the meaning of correspondence received from the IRS, the recommendation is to contact the phone number provided on the correspondence for further explanation ... If that doesn't clear up uncertainties in the taxpayer's mind, face-to-face consultation with an IRS employee at a Taxpayer Assistance Center; in the Cleveland-Akron-Canton area there are three TACs, and their addresses and hours of operation are listed at http://www.irs.gov/localcontacts/article/0,,id=98322,00.html.

When a taxpayer is experiencing economic harm and/or seeks help in resolving tax problems that have not been resolved through normal channels (ie, contacting the IRS employee at the phone number listed on IRS correspondence or face-to-face consult w/an IRS TAC representative) and/or believes that an IRS system or procedure isn't working as it should, that taxpayer can seek the assistance of the Taxpayer Advocate Service (TAS).  TAS is an independent organization with the IRS, established to assist taxpayers in the situations noted above.  Details on TAS and how to contact a TAS representative for assistance can be found at http://www.irs.gov/faqs/faq/0,,id=199554,00.html.

There is also an appeals process, by which taxpayers meeting certain qualifying conditions may resolve tax controversies, without litigation, on a fair and impartial basis.  Appeals may be an option for taxpayers who have received IRS correspondence that advises them that they have the right to go to Appeals to dispute an IRS decision, AND they do not agree with the IRS judgement and are not signing the IRS agreement form sent to them.  This link provides more information on appeals:  http://www.irs.gov/individuals/content/0,,id=98196,00.html.

For certain types of taxpayers, to include businesses and self-employed, there can be an additional recourse available:  alternative dispute resolution through "Fast Track".  Details on that can be found here:  http://www.irs.gov/individuals/article/0,,id=96779,00.html.

Each taxpayer's set of circumstances is going to be unique, due to different age, filing status, number of dependents, exemptions, income, expenditures, qualifying deductions and credits, etc., etc.  Accurate reporting of income and money-saving tax credits and deductions is important.  When a taxpayer disagrees with an IRS judgment, depending on the circumstances, the taxpayer may be able to seek further review of the IRS judgment through the Taxpayer Advocate Service, the Appeals process, and/or through Fast Track (alternative resolution services).

It boils down to Taxpayer Rights and Responsibilities, IRS Publication 1, at http://www.irs.gov/pub/irs-pdf/p1.pdf, which lists recourse available to taxpayers who disagree with IRS computations and which notes that taxpayers "are responsible for paying only the correct amount of tax due under the Law - no more, no less."

 

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