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WebTaxMan
WebTaxMan, Tax Accountant
Category: Tax
Satisfied Customers: 922
Experience:  20+ Years experience-CPAs & My Own Business/IRS Authorized e-file Provider/CA Tax Education Council
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what is a irs letter 12c

Resolved Question:

what exactly is the letter for? And is it an audit from the IRS?
Submitted: 7 years ago.
Category: Tax
Expert:  WebTaxMan replied 7 years ago.
Hi Customer,

No. It is not an audit, nor does it mean it will lead to an audit. Not responding to the request is what leads to an audit. Many times the IRS matching system of various forms is out of whack for one reason or another. Either the person who sent a reporting document erred, or the taxpayer erred. It is just a request for further information to clear up what normally can be a very small matter. Not replying turns it into a huge matter.

If you received one, here is an example, you may have one similar, that is if you received a letter.

Should you require further clarification, please never hesitate to ask. It would be my pleasure to clarify the answer to your question. My goal is your 100% satisfaction with all questions I answer.

Regards,

Mike



WebTaxMan, Tax Accountant
Category: Tax
Satisfied Customers: 922
Experience: 20+ Years experience-CPAs & My Own Business/IRS Authorized e-file Provider/CA Tax Education Council
WebTaxMan and 6 other Tax Specialists are ready to help you
Customer: replied 7 years ago.
Reply toCustomers Post: Thank you so far so that I understand what do you think happened. I hap a very large return over 100k done by my same tax prepare who sent it via e-file on the 27th of march. The irs system said it my return would be made on the 10th of April then when I logged on it told me to call 1800-829-0582 and enter extension 463 and tell the rep reference code 1301. It has taken me over 16 different reps and 16 different answers to be told a letter was sent out to me on the 13th with a service code of 12c. What made me nervious is they indicated it was in the Fresno, Ca service office a a individual was assigned to my retunr. Is this normal and what does the above mean?
Customer: replied 7 years ago.
Thank you so far so that I understand what do you think happened. I hap a very large return over 100k done by my same tax prepare who sent it via e-file on the 27th of march. The irs system said it my return would be made on the 10th of April then when I logged on it told me to call 1800-829-0582 and enter extension 463 and tell the rep reference code 1301. It has taken me over 16 different reps and 16 different answers to be told a letter was sent out to me on the 13th with a service code of 12c. What made me nervious is they indicated it was in the Fresno, Ca service office a a individual was assigned to my retunr. Is this normal and what does the above mean?
Expert:  WebTaxMan replied 7 years ago.
Hi Customer,

With the amount of income you reported, you probably had either one or more informational forms sent by somebody or some entity who paid you, and the amounts do not equal. This could be even IRS error, as I neglected to mention as another possibility to why one receives a 12C. As I said, they are relatively harmless letters, but if not handled properly (the example I gave you WAS NOT handled properly), you may have reason to be nervous. If you have been with your tax professional for some time, and you believe he or she is competent professional, take the letter to him or her as soon as you receive it. It appears to be in transit in the US postal mail right now. There really isn't much you can do until you receive the letter.

Just because an individual was assigned to your return does not really matter much. It could be a simple 10 hr tax technician who has it it in his inbox. What happens through the "matching system" is a bell and a light literally does go off, then the returns are sorted into a different box. The tax technician then takes those and handles them manually. So far, I see nothing to worry about. Just do not delay in responding to the letter, and please respond directly to each piece of information asked for. Your tax professional should know how to handle these. We get them all the time. Many times, these go away with no problem. The only time I have had problems is when the taxpayer was not being honest with me.

Should you require further clarification, please never hesitate to ask. It would be my pleasure to clarify the answer to your question. My goal is your 100% satisfaction with all questions I answer.

Regards,

Mike

WebTaxMan, Tax Accountant
Category: Tax
Satisfied Customers: 922
Experience: 20+ Years experience-CPAs & My Own Business/IRS Authorized e-file Provider/CA Tax Education Council
WebTaxMan and 6 other Tax Specialists are ready to help you
Customer: replied 7 years ago.
Relist: I still need help.
When you indicate another entity not responding what exactly does that mean. I had several 1099 R and several employers. But as you are aware of the employers can report this years tax returns latter with a extension so could you please elaborate?
Customer: replied 7 years ago.
When you indicate another entity not responding what exactly does that mean. I had several 1099 R and several employers. But as you are aware of the employers can report this years tax returns latter with a extension so could you please elaborate?
Expert:  WebTaxMan replied 7 years ago.
Hi,

The not responding was in reference only to you, the taxpayer who receives a 12C notice. To clarify, please respond to the LETTER 12C when you receive it.

When I said other entities, I was speaking in general terms as if one entity sent you a 1099-R that was not filled out correctly, thus did not match what you reported on your return. The fact that you just said you had several 1099-Rs and several employers increases the chance something will not match up, thus, causing the return to be sorted, and handled separately. Is that what you were asking? Let me know if not. I want to make sure you get some sleep tonight!

Should you require further clarification, please never hesitate to ask. It would be my pleasure to clarify the answer to your question. My goal is your 100% satisfaction with all questions I answer.

Regards,

Mike

Customer: replied 7 years ago.
Reply toCustomers Post: since it was e-filed what would not be filled out correctly? and much of the information in question such as w-2 and 1099 reporting can be done at a latter date depaending on the company? is this information correct or not?

Thanks,

Brian
Expert:  WebTaxMan replied 7 years ago.
Hi,

The e-filing of your return is no different than a manual return. It is just processed differently. The W-2s, and the 1099-Rs all have to be submitted by the issuers by January 31, after the tax year ends. So your W-2s were already reported to the IRS by Jan. 31, and the 1099-Rs deadline is February 28th. You had filed after the IRS already had copies sent to them. So the incorrect information, if that even is the case, was filled out long before you filed. The only way to find a mismatch is once the IRS receives the return.

The e-filing system electronically sees an amount that does match. also, e-file, regardless of what the IRS tells us, is not free from glitches. This adds another possibility as to why you may have received a 12C. As I said, you really will not know until you actually receive it. It may come tomorrow, or the next. So I really cannot speculate as to what the inquiry is about.
----

Should you require further clarification, please never hesitate to ask. It would be my pleasure to clarify the answer to your question. My goal is your 100% satisfaction with all questions I answer.

Regards,

Mike


Customer: replied 7 years ago.
Reply toCustomers Post: Mike,

One last question then I can sleep. Can the companies file an extension to file with the IRS. I know they need to get us the information by certain dates but can companies file extensions much like we can?
Customer: replied 7 years ago.
Mike,

One last question then I can sleep. Can the companies file an extension to file with the IRS. I know they need to get us the information by certain dates but can companies file extensions much like we can?
Expert:  WebTaxMan replied 7 years ago.
Hi sleepless in Clovis,

There are HUGE penalties placed on employers for not filing the W-2s on time, and also those who issue 1099-Rs. The reason is mostly because the taxpayers need this information for their tax returns. RARELY, is an extension given. They are allowed to correct the original filings however. But even then, any employer would try to avoid that. It implies they are not following the rules correctly.

It seems you have managed to cover almost everything possible to worry about. I think if you really want to get some sleep, if you tell me what YOU think may be the problem, maybe I can help further, and you can get some well deserved rest?

Let me know okay....

Mike
WebTaxMan, Tax Accountant
Category: Tax
Satisfied Customers: 922
Experience: 20+ Years experience-CPAs & My Own Business/IRS Authorized e-file Provider/CA Tax Education Council
WebTaxMan and 6 other Tax Specialists are ready to help you

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