It’s the beginning of the year and the IRS is already sending out 3 types of notices.
In January, the IRS is sending taxpayers three letters, known as letters 4869C, 6419 & 6475.
- Letter 4869C is the taxpayer IP PIN (Identity Protection PIN) to be used for all e-filed returns in 2022.
- Letter 6419 identifies the Advanced Child Tax Payments that were distributed in 2021.
- Letter 6475 identifies the third stimulus amount that was distributed as the 2021 Recovery Rebate Credit.
You will get one or more of these letters depending on your situation. Reporting the correct amounts is essential to the IRS processing your 2021 tax returns so please retain the letters for your tax professional. If you have not received any letters, but some of the situations above apply to you, the IRS has put an app on its homepage so you can see what amount was distributed to you in Advance Child Tax Credits and for the 3rd round of stimulus payments. If you put down the wrong amounts, this will delay the processing of your tax return with the IRS and it will delay your refund if you are due one.
Part of what I do is to know what the IRS letters are for and why you received one and how to deal with them. If you receive one, please don’t put it in your underwear drawer and hope that thew IRS will forget about you. They won’t. If you receive a notice, please call me so we can see how to best deal with the situation
DON’T FORGET: Several years ago, we offered an IRS Transcript Monitoring Plan (TMP), and I spent last year revamping it and now I am offering it again, but much more comprehensive than in the past. With a signed Power of Attorney (POA), we can access your transcripts at the IRS and see what they see on a daily basis. The beauty of the TMP is that we will be immediately notified of any change to your IRS account, often before a notice arrives in the mail. If you have any questions about the program, feel free to reach out. This is a good program if you have current issues with the IRS or just want peace of mind
Ancient taxes from around the world
Taxes from England:
- Playing cards were taxed as early as the 16th century, but in 1710, the English government dramatically raised taxes on cards and dice. This led to widespread forgeries of cards to avoid paying the tax. The tax wasn’t removed until 1960.
- In 1660, England placed a tax on fireplaces. The tax led people to brick up their fireplaces to conceal them and avoid paying the tax. It was repealed in 1689.
