I filed my 2006 tax return and checked the status online and it stated that they will be mailing me a letter requesting more information before they will release my refund. What does that mean? What could they possibly want?
2007-01-24 07:56:31 · 6 answers · asked by CURIOUSSAM 2 in Business & Finance ➔ Taxes ➔ United States
YOU HAVE BEEN AUTIDED!
But, don't worry the IRS audits a lot more tax returns than most people think. They also audit a random sampling of people. In your case you probably have a complex tax return so they want more detail. The best thing to do is to give them the information and save up some money.
If your deductions are disallowed then you are going to have to pay the tax and any penalties as soon as possible. The IRS can get very nasty about this and charge you MONTHLY interest fees, which can make your debt skyrocket. Then once that happens they hound you more than any five debt collectors ever could. This is a worst-case scenario but it is always a possibility.
When a tax return is submitted it is entered into a computer and a complex formula is applied to it. This formula looks for things that might be a sign of cheating and puts up red flags. When a red flag appears then the IRS requests more information. I have no way of knowing what red flag came up on your tax return, but clearly one has appeared. If you had your taxes prepared by a company or a tax specialist then they are responsible for that, but you are responsible for the information you gave. The same is true if you did your taxes yourself or if you used software to do it.
If your tax return was a basic one; standard deductions or only the deductions for children and a house mortgage’s interest then something else is going on; probably the taxes haven't been computed yet. My information is a little out of date, but the last I knew the data had to be entered by hand at the master office. These people are quick so it is more likely that the IRS has a question about something. You need to collect the records that you used to prepare your taxes and be ready to send them a copy of whatever they need.
2007-01-24 08:21:57 · answer #1 · answered by Dan S 7 · 0⤊ 0⤋
It could mean anything from your social security number is incorrect to the name on the return doesn't exactly match social security records.
This happens when someone is married/divorced and doesn't officially change the social security records to reflect the new name and uses the new name for the return.
If you claimed a lot of deductions or there was a mathematical error, it can generate a letter. Also if you claimed dependents and the SS# doesn't match or if you are a divorced parent and the other parent claims the child, it will create a conflict.
It could be something very minor. Did you forget to sign the return?
Call and ask.
2007-01-24 16:03:03 · answer #2 · answered by Tellin' U Da Truth! 7 · 1⤊ 0⤋
There is information floating around that does not make sense. It could be started by you or by someone else. Most likely by someone else. An example, someone filed for your SS as your spouse and you are surpose to be diceased.
2007-01-24 16:03:47 · answer #3 · answered by whatevit 5 · 0⤊ 0⤋
I highly recommend that you call them. The employees at the IRS are (surprisingly) very helpful, courteous and pleasant.
It's very likely that they can answer your questions, and quickly.
2007-01-24 16:04:54 · answer #4 · answered by abfabmom1 7 · 0⤊ 0⤋
You got a letter stating that they will be mailing you a letter? Bizarre.
Anyway, it's likely that they want substantiation... your documentation and receipts, etc.
2007-01-24 16:01:59 · answer #5 · answered by Lisa A 7 · 0⤊ 2⤋
they have a question on something or you filled out something wrong on the application. usually not a big deal.
2007-01-24 16:03:13 · answer #6 · answered by Todd V 1 · 0⤊ 1⤋