All QA

  • Why was I notified by the IRS? What should I do?

    The IRS sends notices and letters for the following reasons:

    • You have a balance due.
    • You are due a larger or smaller refund.
    • We have a question about your tax return.
    • We need to verify your identity.
    • We need additional information.
    • We changed your return.
    • We need to notify you of delays in processing your return.

      Next steps

      Read

      Each notice or letter contains a lot of valuable information, so it’s very important that you read it carefully. If we changed your tax return, compare the information we provided in the notice or letter with the information in your original return. 

      Respond

      If your notice or letter requires a response by a specific date, there are two main reasons you’ll want to comply:

    • to minimize additional interest and penalty charges.
    • to preserve your appeal rights if you don’t agree.

      Pay

      Pay as much as you can, even if you can’t pay the full amount you owe. You can pay online or apply for an Online Payment Agreement or Offer in Compromise. Visit our payments page for more information.

      Keep a copy of your notice or letter

      It’s important to keep a copy of all notices or letters with your tax records. You may need these documents later.

      Contact us

      We provide our contact phone number on the top right-hand corner of the notice or letter. Typically, you only need to contact us if you don’t agree with the information, if we requested additional information, or if you have a balance due. You can also write to us at the address in the notice or letter. If you write, allow at least 30 days for our response.

      (Source:IRS)

  • What is an ITIN?What is an ITIN used for?

    An Individual Taxpayer Identification Number (ITIN) is a tax processing number issued by the Internal Revenue Service. The IRS issues ITINs to individuals who are required to have a U.S. taxpayer identification number but who do not have, and are not eligible to obtain, a Social Security number (SSN) from the Social Security Administration (SSA).
     

    IRS issues ITINs to help individuals comply with the U.S. tax laws, and to provide a means to efficiently process and account for tax returns and payments for those not eligible for Social Security numbers. They are issued regardless of immigration status, because both resident and nonresident aliens may have a U.S. filing or reporting requirement under the Internal Revenue Code. ITINs do not serve any purpose other than federal tax reporting.

    An ITIN does not:

    • Authorize work in the U.S.
    • Provide eligibility for Social Security benefits
    • Qualify a dependent for Earned Income Tax Credit Purposes

    (Source:IRS)

  • Do I need an ITIN?

    Does the following apply to you?

    1. You do not have an SSN and are not eligible to obtain one, and
    2. You have a requirement to furnish a federal tax identification number or file a federal tax return, and
    3. You are in one of the following categories:
      • Nonresident alien who is required to file a U.S. tax return
      • U.S. resident alien who is (based on days present in the United States) filing a U.S. tax return
      • Dependent or spouse of a U.S. citizen/resident alien
      • Dependent or spouse of a nonresident alien visa holder
      • Nonresident alien claiming a tax treaty benefit
      • Nonresident alien student, professor or researcher filing a U.S. tax return or claiming an exception

    If so, then you must apply for an ITIN.

    (Source:IRS)