Going through your mail and seeing a letter addressed from the IRS can send you into a state of anxiety. You may be asking yourself a lot of questions as you slowly tear open the envelope. If you discover that the IRS sent a notice claiming they made a change to your refund check amount, there’s no need to panic. Every year, thousands of adjusted refund letters to taxpayers across the country by the IRS. Getting an IRS adjusted refund letter doesn’t mean you did anything wrong. Instead, it’s a simple notice letting you know a change has been made to your refund. If you’ve received one of these letters from the IRS, you should seek the aid of tax professionals who are willing to help you respond. Why was I notified by the IRS? The IRS sends numerous notices to Americans each year for different reasons. From information requests to identity theft notices, the IRS handles a lot. One subject of notices concerns adjustments made to your tax return. Whenever the IRS makes an adjustment to your return, they will send you a notice with the letters “CP” followed by a distinct number on the top.  These different numbers shows their reason for making an adjustment to your return. Adjusted refund amount means the IRS either owes you more money on your return, or you owe more money in taxes. For instance, the IRS may use your refund to pay an existing tax debt and give you a CP 49 notice. Or, a simple math mistake can turn out in your favor with a CP 12 notice that corrects one or more mistakes on your tax return. For instance, if you ended up making an excess payment on your taxes, the IRS would send you a refund check for the amount you overpaid in about 4-6 weeks. These types of notices do not imply you are in trouble and you normally don’t have to reply to these common IRS notices, unless you do not agree. Understanding your notice If you receive an IRS adjusted refund letter through your mail, you may be uncertain about what you did wrong on your tax return. When you get a letter from the IRS by mail, contact information will always be provided in the top right corner by the CP number so you can ask questions you are unsure about, or get more information on your case. Each notice will characteristically provide details on:

• What information the IRS needs from you
• Why the IRS is making the change
• What parts of your return or account the IRS is making changes to
• Why the IRS needs your information
• When you should send your reply (if needed)

What to do Next Now that you’ve gone through your IRS notice, it’s time you made up your mind on whether to take action or not. If you agree that your IRS adjusted refund is correct, you basically do not need to respond. However, if you do not agree with your notice or if your notice requires you sending in a response, you must reply accordingly. If you’re not certain on how to respond to your IRS notice, you should seek the assistance of tax experts to help you do so. Or, you can follow these steps below if you get a notice from the IRS: Step 1: Read In every IRS notice, there are usually relevant details on your IRS refund status and why an adjustment was made. Take time to meticulously read your notice and evaluate it with the tax return you filed. Doing so will help you spot out any mistakes you may have made or, identify any errors made by the IRS. Step 2: Respond Some IRS notices are issued with deadlines and require you to respond by a specific date given. This is usually the case when you owe money. It’s of essence to respond before the deadline so that you can:

• Reduce extra interest and penalty charges.
• Preserve your appeal rights if you disagree with your notice.

Step 3: Pay For IRS notices that require a payment, you must obey and pay as much of the refund as you can. The IRS gives various payment options that work for your financial situation, such as having your account status changed to “Currently Not Collectible.” As soon as you figure out the amount you owe, you can make use one of the IRS’ many payment methods to satisfy your tax balance. You can make payments online, in cash at a retail partner, or send in a check or money order. In spite of your situation, the IRS is willing to work with you. However, disregarding this notice will lead to you owing more money from penalties and accumulated interest. If you’re not certain on which payment plan is best for you, you may consider speaking with a tax expert to assist you in evaluating your options. Step 4: Keep a Copy It’s exceptionally important to keep a copy of all your tax records. It’s a general tax refund myth that only the rich can get audited. IRS audits usually commence three to four months after the filing deadline, but some audits be done years after it was received. Proper documentation of a copy of all of your tax returns, notices, and letters will make situations like these easier to handle. How to make corrections to a tax return Mistakes are bound to happen in life. Even the IRS is staffed by people who make mistakes as well. The IRS is never out to get you, they are just doing their job so they can collect taxes that benefit the public in general. If you made an error on your tax return or want to make corrections to a tax return from the preceding year, you can correct this with an amended return. An amended return offers you the option you to resolve the problem and claim a more beneficial tax return or make a payment if you realized you filed wrongly. Regardless of whether you owe money or are owed money, it’s essential you obey so you can rest assured knowing the IRS doesn’t get a wrong impression about you. Amended returns also allow you to clarify your situation in part III of Form 1040X so they can understand the reason for the amendment. However, once filed, all you can do is wait for a response. It can take about 16 weeks for your amended return to be processed. You can always check your tax refund status of your amended return online or by calling. Conclusion In conclusion, never panic if you receive an IRS adjusted refund letter in your mail. Usually, the notice is not a big deal and if you made a small mistake on your return, the IRS will fix it for you and simply notify you. However, there are circumstances where you may owe money or where the IRS owes you money. Whatever the scenario may be, it’s advisable to handle the notice right away by seeking the assistance of a tax professional instead of taking matters into your own hands.