Most of us cringe when we see a letter from the Internal Revenue Service (IRS) in the mail. And, if that letter requests more information on your tax return, you probably feel a sense of dread. However, receiving a letter 12c from the IRS is not necessarily a bad thing. In fact, it’s an opportunity to correct any errors and make sure you receive the tax credit you deserve. In this blog post, we’ll explain how to respond to a letter 12c request for more information and how to file form 8962.
Don’t panic and read the letter carefully.
Before you take any action, read the letter carefully and make sure you understand what the IRS is asking for. Typically, the letter will explain why they need more information and may include a list of documents to provide, including form 8962. It’s essential to follow the instructions carefully as the IRS may reject your response if you miss anything.
Gather the required documents.
After understanding the letter, gather all the documents the IRS requires. In most cases, they will need Form 1095-A, Health Insurance Marketplace Statement, which you can get from the Health Insurance Marketplace. You’ll also need form 8962, Premium Tax Credit. Make sure to review the instructions for each form thoroughly.
Respond promptly.
The IRS gives you a deadline to respond to letters 12c, and you need to respond within the specified time. If you fail to respond within the deadline, the IRS may reject your response or disallow your tax credit entirely. Ensure you double-check any significant details such as spelling, Social Security Numbers, and the correct amount of tax credits claimed.
Know what to do if you disagree.
If you disagree with the IRS’s calculations or the outcome of your case, you have the right to file an appeal. You’ll need to provide a written request for appeals within 30 days of the IRS’s notice of determination. You may also consider hiring a tax professional to help you prepare your appeal.
Seek help.
If you are unsure about anything or need help completing the forms, you can seek help. You can either reach out to the IRS or hire a tax professional to help you navigate the process. Getting help can save you time, money, and prevent any costly mistakes.
The IRS letter 12c can feel overwhelming and confusing, but it doesn’t have to be a nightmare. Responding promptly, accurately, and calmly can help you resolve any issues and receive the tax credit you are entitled to. Don’t hesitate to ask for help to ensure the response is accurate and prevent any further complications. With the right approach, it is possible to handle the IRS letter 12c request for more information and filing form 8962 professionally and efficiently.
*** This article is for informational purposes only and does not constitute tax, legal, or financial advice. Before making any decisions related to taxes, please consult a licensed CPA, Enrolled Agent or other qualified professional. ***
Other great articles to help with your taxes:
