Don’t Throw These Emails Out of the IRS, This Is Not a Scam
Taxpayers were bewildered by letters recently sent out by the IRS, which they deemed to be fraudulent. However, these emails are legal and worth keeping as they can help you get the money associated with the recovery tax credit claimed on your 2020 tax return.
What exactly are these IRS letters?
They are associated with incentive payments for 2020. For most people, the discount has already been paid through the first two COVD assistance incentive checks, but you can also claim these funds when filing your 2020 tax return (for more information on how to qualify, click here ).
The first batch of letters ( CP 11 , CP 12 or CP 13 ) explains that the IRS processed the recipient’s 2020 tax return and found errors (income, dependents status) that changed the calculations to reimburse them. This means you may owe more money, don’t need anything, or even tax money (although in this case it has to do with your tax return as a whole, not your recovery discount).
However, the IRS forgot to include information on how to appeal these decisions, as the agency is required by law to do so. For this reason, the IRS hastily sent out a second follow-up letter, 6470 , which provides additional information about the appeal process as well as the contact information required to do so. The letter begins with the words, “We previously sent you a notice stating that we changed the amount claimed for Refund Reimbursement (RRC) on your 2020 tax return …” and again, this is all legal.
What are you going to do with these letters?
The IRS makes mistakes all the time, so you need to make sure their calculations are correct. After that, if you still think you are eligible for a loan, you must file an appeal within 60 days of receiving a letter confirming your eligibility for a dependency and income loan.
If you have no reason to appeal, you do not need to do anything, as the adjustment will be considered official after 60 days. At this point, the IRS can begin the collection process if you owe them money.