I got IRS Letter 6470; what do I do?

October, 01 2021 by Samantha Lamb

Recently, many taxpayers have received a confusing set of letters from the IRS. The first notice of the series is usually a CP11, CP12, or CP13, which are “math error notices”. These notices are intended to notify taxpayers who had claimed the Recovery Rebate Credit that their return has been changed. These changes are typically related to the taxpayer’s eligibility, their calculation of the Recovery Rebate Credit, or due to an error in reporting an identification number (social security number, ITIN, etc.) of the taxpayer, spouse or dependent.

However, an important piece of information regarding a taxpayer’s legal right to appeal the notice was omitted from the original letters. The follow-up notice, Letter 6470, notifies the taxpayer of their legal rights to appeal and apologizes for the omission. To further complicate matters, the letter is vague and does not explain why the changes were made. Additionally, taxpayers who received this letter may have also already received their full refund, including the Recovery Rebate Credit.

It’s important to note that as confusing and vague as these letters are, they are not a scam. If you have received one or both of these letters, read them carefully. After you’ve read them, go back to your tax return and review the information you submitted. If, upon reviewing your return, you determine that the notice is correct, you do not need to take any further action. If the outcome is that you have a balance due, you will need to make a payment to the IRS. To pay any money owed to the IRS, you can go online to www.irs.gov and pay your bill through the Online Account tool. If you have not created an online account previously, you will need to visit Secure Access. This is the IRS’ two-factor authentication process that helps protect your identity and personal information. Through the Online Account tool, you’ll be able to make your payment, look at your transcripts, and, if necessary, set up a payment plan.

If you believe that you received the letter in error or the IRS is incorrect in their adjustment, you have 60 days to respond to the IRS. It is best to start by calling the number provided on the notice and speaking with a representative. You may be required to send in documentation that supports your claim, such as proof of dependents and income. If you do not contact the IRS at all within the 60-day window, the adjustments made by the IRS will stand. If a balance is owed at that time, the IRS can begin with their collection processes.