An IRS Letter To Look For

Happy New Year!

Thank you for being a part of our firm and placing your trust in us – we never take that for granted.

As we gear up for tax season, you’ll no doubt be receiving the usual flurry of tax documents, including the familiar W2, 1099, 1098, and the 1095, in all their respective variations.

New for this year, for those taxpayers that have received payments under the Economic Impact program, or ‘stimulus payments’, the IRS will be sending a letter out to you that lists the date and amount of payments received during the year. The letter, formally referred to as “IRS Letter 6475” will be mailed to you by the IRS beginning in the month of January.

Additionally, for those taxpayers that have dependent children as reported on either their 2019 and/or 2020 tax returns, expect a letter from the IRS that reports any payments that were made to you as part of the expansion of the Child Tax Credit. The IRS began issuing payments on a monthly basis from July thru December of 2021; six in all. These payments were either sent via direct deposit to the bank account listed with your 2020 return, or will sent vial paper check and USPS. The letter that the IRS will mail out to parents is formally referred to as “IRS Letter 6419”, and will also be mailed out to your address of record beginning in January.

It is very important that any payments received under either of these programs during 2021 are reported on your tax return. Not doing so could result in penalties or delays in processing.

When you receive either of these letters, please be sure to upload it to TaxCaddy along with the rest of your tax documents.

Here is the IRS press release for further information.

Take care and stay safe,

Jonathan E. Rivlin, CPA

President