The Taxpayer Advocate Service recently conformed that the IRS has distributed 9 million notices to taxpayers between Jan. 1 of this year to July 15.
According to KTVU, this means that people who claimed the recovery rebate may have had a math error on their return, meaning they will owe it back next year.
A 6470 letter was sent to taxpayers in the mail, asking them to check and see if they owe money.
The Tax Payer Advocate Service verifies that the IRS is correcting more errors than they ever have before.
Out of the nine million issued notices, 7.4 million are stimulus related.
A spokesperson from the IRS explained that stimulus checks were on a tight schedule and needed to be sent by a certain deadline, when the process would normally take weeks.
This caused a lot of errors.
Experts warn those that receive an error to not ignore it, that’s the worst thing to do.
The letters are giving people a balance they they owe, but failing to explain how or why.
The following notices have gone out and here is what they mean:
- CP11: you owe more from your previous tax return
- CP12: you’re owed more money
- CP13: you don’t owe and aren’t getting more money.
If a response isn’t given to the IRS within 60 days then the IRS can collect on what they claim is owed, taking away the chance for people to file a petition through Tax Court.
It’s estimated that over 5 million people have not received information about the 60 day notice in their letters.
It is also estimated that out of the 167 million phone calls the IRS received this year, only 9% were answered.