Did You Receive an IRS 105c Letter? Learn What It Means & What to Do.
Understanding IRS Letter 105C
What is a Letter 105C?
IRS Letter 105C is sent when the agency is refusing your claims.This is a full denial that happens when they have determined for one or more reasons that you have lost the right to a refund of any kind for the deductions you made. The two main reasons for this are overdue tax returns and a failure to provide sufficient proof to justify your deductions. There is also a Letter 106C which advises of a partial denial.
What Should I do if I Receive Letter 105C?
You can either agree or disagree with Letter 105C Return Errors. If you choose to agree, then you will not get what you are claiming and the necessary adjustments to your taxes will not be granted. You do have the option to file an appeal to the tax court if you disagree. Bear in mind however that it is best to look at how legitimate your claim is. In most cases, rejection for late returns will not be overturned unless you can prove your situation is unique/special.
How Much Time do I Have to Respond?
Remember that you only have thirty days from receipt of the Return Error Letter 105C to file any protest or appeal to the tax court. Therefore, you need to read the letter carefully to see the date as well as any other important pieces of detail. Also, there may be fines involved, in which case the letter will state these explicitly.
What Action will the IRS Take if I Don't File an Appeal?
Not filing an appeal will simply be equated to agreeing with the denial to your claims. If you disagree and you intend to file a protest, it is recommended that you file it as soon as possible within the 30-day time frame. You will lose the right to appeal if you miss the deadline.