You received a penalty letter or a tax assessment letter from the IRS or any state
The IRS and states often send letters if they find issues with your return. The most common letter is a CP2000, which means the IRS has found changes that must be made to your return. This happens when the information they have received does not match what you reported. The most common reasons for this are missing 1099-Ks from ecommerce, missing 1099Rs from a distribution from a retirement plan, or missing RSU/ESPP/NSO equity from an employer stock compensation plan.
State letters normally arrive because an aggressive state, such as CA or NY, has determined that you possibly lived there & owe them tax.
These can often easily be addressed – just shoot us a message below.
Other common reasons are below:
- You realized you accidentally forgot to report 1099-INT, 1099-DIV, K-1, 1099-MISC or any other type of income
- You found out that you qualify for a tax credit or deduction and would like to get your refund.
- Included incorrect dependent information
- Accidentally left out foreign income, FBAR, forms 8938
- Returns were filed too aggressively or by unlicensed person & you would like to have them corrected
- Depreciation was missing from a rental property
- State tax was allocated incorrectly
- Forgot to report forms 3520, foreign gifts, foreign companies, or other required disclosures
Note: tax refunds from the IRS are only allowed for three years after your filing due-date, so act fast if you feel that your amendment will produce a refund!
