IRS Letter 6470 re: Recovery Rebate Credit?? - Spidell

IRS Letter 6470 re: Recovery Rebate Credit??

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Message Board IRS Letter 6470 re: Recovery Rebate Credit??

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    • #315705
      Mary Jean Kolchak
      Participant

      Two clients received the above-mentioned letter dated 9/16/21.  The letter said this was the second notice.  Neither client had received a first notice.  This letter indicated that the amount claimed as a Recovery Rebate Credit (RRC) was incorrect due to one or more of five reasons.  The reason was not indicated.  The amount of the error was not specified.

      If taxpayer agrees with the changes, they should do nothing.  If they don’t, they should call a specific number.  The client who did call said the IRS person was completely unhelpful.  The taxpayer could also write to the IRS at the above address (Austin, TX 73301-1500).

      It is an exceedingly confusing letter with threats of audit, etc.  Is this how the IRS is going to handle incorrect RRCs claimed on returns?  Both clients have already received the refunds shown on the return.  If there is a balance due as a result of this letter, they don’t know how much it is.

      I had several clients who couldn’t remember how much, if any, Stimulus #1 or #2 money they received.  When contacting the IRS to ascertain the amount, they ran into roadblock after roadblock.  I fear this is going to happen again for the 2021 returns due to Stimulus #3.

      It would be great if the IRS could rethink this approach on their Letter 6470 and provide actual details and amounts.  I realize they are busy and understaffed, etc., but they should stop sending out these useless notices.  They will only create further work for themselves.

      For now, I suggested that they call the IRS to get on notice, and then to write a letter to the address indicated asking for specifics about the purported change and a calculation of the any additional amount due.

    • #315708
      Maria Ku
      Participant

      One can look it up in one’s IRS online account.

    • #315711
      Mary Jean Kolchak
      Participant

      Thanks for the response.  However, given the age and lack of computer savvy, neither of these clients can/will do that.

      Just noticed that Spidell’s October 2021 federal tax letter addresses this issue – sorta.  This particular notice is not mentioned, but the IRS’s “math error authority” seems to be in play.  I agree with the Tax Advocate.  This method of making changes doesn’t work.  They need to send notices indicating how the change was calculated and upon which information they relied.

       

    • #315724
      Mark Bole
      Participant

      I had several clients who couldn’t remember how much, if any, Stimulus #1 or #2 money they received.

      They don’t have to remember.  They can consult the confirmation letters they received at the time the EIPs were made.  Or, they could even check their monthly bank account statements.  Per IRS Topic No. 305, “You must keep records, such as receipts, canceled checks, and other documents that support an item of income, a deduction, or a credit appearing on a return

      Also check this FAQ at the IRS.  Since your clients received a second notice, it may fall under the following provision:

      You may receive a second letter this year from the IRS about the math or clerical error made when computing your 2020 Recovery Rebate Credit. If you disagree, you can call us at the toll-free number listed on the top right corner of your notice.

      Taxpayers who received a math error notice before July 15, 2021 did not receive language advising them to contact the IRS within 60 days if they disagreed with our changes to the return. To ensure taxpayers understand their right to disagree, the IRS will issue a supplemental notice describing the cause of the error and providing taxpayers 60 days from the issuance of the new notice to dispute the change made to the return.

      https://www.irs.gov/newsroom/2020-recovery-rebate-credit-topic-g-correcting-issues-after-the-2020-tax-return-is-filed

    • #315883
      sasha palma
      Participant

      I made an account just to tell you this is a scam! My dad received one of these letters and everything I have looked up shows this is a scam!

    • #315893
      Mark Bole
      Participant

      I made an account just to tell you this is a scam!

      If it is a scam then where is the call to action to either make a payment or send confidential info?

      From the original post, “If taxpayer agrees with the changes, they should do nothing. ”

      Do you think scammers spend their time sending letters to people telling them they don’t have to do anything?

    • #315963
      Kyle Lenout
      Participant

      Hello. I also received this letter and decided to register an account after seeing this new thread. I received the letter in the mail today, and it didn’t seem to make sense. However, they did have the names of my wife and I checked the IRS website to see there were no notifications.

      This notice was also for for an RRC, and it was delivered without postage under Permit No. G-48. I had not received the first letter either, but was told this was the second.

      • #316000
        Patricia Wiley
        Participant

        Did you register an account with the IRS online?  I’m going to do the same.

    • #315999
      Patricia Wiley
      Participant

      Hello all.  I’m glad I found others seeking answers to this.

      I received this very letter yesterday, 9/27, in the mail.  I, too, never received the first notice.  I called the number and when asked to enter my tax ID number (SS#), it said my number was not on file.  After pressing a few more buttons I was told the phone burden was heavy and that I’d have to call back; I was then disconnected.  I decided that I would write a letter to ensure I had done my part to respond within 60 days.  I’m still going to attempt to call in, but this is beginning to sound hokey.

      Perhaps the angle, if this is in fact a farce, is to worry people or overburden the IRS with baloney. But if you look at it, they got me to enter my social security number…

    • #316008
      Anonymous

      Hello everyone,

      I am just as confused after receiving this alleged IRS letter. However, my letter is even more confusing as it does not state what error was made. Was it my AGI is over $75,000? I wish! Was it that they think I already received the rebate? Again, I wish!

      How do I respond to this by mail if I do not know what error to address? The letter did not come with any amount due or any corrections made. I can not afford to miss a day of work just to be “on hold” if I attempt to phone them (been there, done that) – so I am at a complete loss.

      I also hesitate just blatantly mailing my information (social security number, etc.) to an address in Austin, TX.

      Has anyone seen any further information that these letters may have been sent in error and it is just another IRS fubar?

      Frustrating to say the least!

      • #316091
        Patricia Wiley
        Participant

        I don’t believe they are fake.  I called the number and it was to the IRS.  While holding (for 120 minutes and still nobody picked up), I was repeatedly reminded to go to “irs.gov/payments” to save myself time.  Fraudsters don’t direct you to the actual IRS website.  I am planning on mailing a letter via registered mail, return receipt requested asking for clarification of the specific error.  I tried to create an online account at IRS.gov, but I have no home loan#, no student loan#, no auto loan#, and no credit cards.  How do you like that?  I don’t know why they don’t ask for the checking account number my direct deposit went into as an alternative.  It’s beyond frustrating.  Good luck in getting to the bottom of it.

    • #316014
      Mike Giangrande
      Participant

      Mary Jean,

      The Letter 6470 is a math error authority letter. You can do one of two things:

      1. Do nothing and accept the changes made by the IRS; or
      2. Contact the IRS using the information on the letter within 60 days of the date of the letter and request an abatement of the changes. If you request an abatement of the changes, then the IRS is REQUIRED to abate the changes they made to your client’s Recovery Rebate Credit and then follow-up with regular deficiency procedures.

      You should only do #2 if you know the IRS is wrong. Otherwise, do nothing and let the IRS make the changes to your client’s account automatically. Please ignore the seemingly-threatening audit language. That’s boilerplate language and should not scare you.

      For additional information on math error authority, please consult the article I wrote in the October version of Spidell’s Federal Taxletter. We will also discuss math error authority in more detail in our fall update webinars.

    • #316032
      Mary Jean Kolchak
      Participant

      Hi, Everyone!  I’m the original poster on this.  Thank you, Mike, for taking the time to address this.  After the original post, I found your article in the October newsletter.  It was very helpful.

      Subsequently, I Googled the IRS Letter 6470.  It was there.  The IRS had an explanation of it, saying exactly what you had said.

      The clients who have received this letter are the responsible types.  They let me know (1) when they receive anything from the IRS/FTB, and (2) they traced the amount received into their financial records.  I input the amount they told me they received, and Lacerte handled it from there.  So, I don’t know what error might be involved.  That’s why I don’t want to ignore this.  I hesitate to give the IRS carte blanche to just make a change which can’t be challenged if the client doesn’t respond within 60 days.

      I decided to draft a response letter to give to taxpayers for their use if they want.  It merely requests a written explanation and calculation of the error made and the changes proposed to the return.  I instructed the clients to mail the response, including copy of Letter 6470, to the address in Austin using certified mail with return receipt requested.

      We may be talking about chump change here, but I thought it better to not ignore.  Anyway, thank you again, everyone, for the help!

       

      • #316092
        Patricia Wiley
        Participant

        Hi.

        I realize your letter is just for your clients, but I have a question and it’s probably a no-brainer.  Does it include the full social security number or just the last 4 digits of the social security number?  I want to send enough information so that I get what I need back, but don’t want to risk sending it through the mail.

        Thanks in advance,

        Patricia

    • #316045
      Mark Bole
      Participant

      The clients who have received this letter are the responsible types. … they traced the amount received into their financial records.”

      But that contradicts what you said in your OP: “I had several clients who couldn’t remember how much, if any, Stimulus #1 or #2 money they received. ”  It also contradicts what we know about many taxpayers who carelessly threw away their EIP debit cards, for example.

      Perhaps the angle, if this is in fact a farce, is to worry people or overburden the IRS with baloney. But if you look at it, they got me to enter my social security number…

      Well, it is true that some politicians do whatever they can to undermine the confidence of citizens in their government, but I don’t think this is an example of that.  The phone number thing is problematic; the IRS should publish valid phone numbers at the web site.  It is always risky to call a number or mail to an address someone sent to you unsolicited and then divulge PII.

      Here is a copy of the letter, did anyone receive a different one?

      www reddit com/r/IRS/comments/pv1o8w/heres_lettter_6470_that_has_been_showing_up_in

      “they ran into roadblock after roadblock

      What were those?

      Here is the latest IRS link updated as of yesterday.  While surely frustrating to those who receive the letter, it seems like it is probably a tiny portion of the total number of taxpayers who received EIP/RRC money. The biggest issue seems to be that the IRS thinks they sent a prior notice explaining the error, but everyone in this thread claims they received no prior notice.

      www irs gov/individuals/understanding-your-letter-6470

      Note: this forum seems to silently reject posts with links in them, even when using the link feature, so in the above two links, you will have to insert the “dots” in the proper place yourself.

      • #316086
        Patricia Wiley
        Participant

        My letter is identical to the one you posted the link for.  Thanks for sharing.

    • #316047
      Mark Bole
      Participant

      The phone number 800-829-0922 is a valid IRS phone number according to the web site.

       

      • #316085
        Patricia Wiley
        Participant

        Correct.  I called the number today and was told I had a 30-60 minute wait.  After 120 minutes, I ended the call.  I have decided I will send a letter via registered mail asking for clarification.

         

    • #316075
      Matt Leach
      Participant
    • #316130
      Linda Nikolova
      Participant

      Could you provide a Sample of the Letter we have to send to the IRS?

    • #316158
      Anonymous

      I also received  a letter from the IRS, and I’m so confused. I filed my taxes as married  filing separate with no dependents but my letter claims that one of my qualifying  dependents social security  number was  missing or incomplete?? My youngest child is 30 and has a family of his own. I didn’t claim anyone and I feel like they are trying to  insinuate  that I tried to commit fraud, which I didn’t and wouldn’t, I’ve also tried to call to make sure everything is in order  with me and the IRS but of course they are to busy at this time so they hung up on me after I entered  my social security number.  I always worry that I will sound stupid or come across as rude over the phone but I don’t think I’ll have that problem  while dealing with the IRS from now on

      • #317086
        Jermaine Tobey
        Participant

        …but my letter claims that one of my qualifying  dependents social security  number was  missing or incomplete?

        That’s not what the letter claims, if it is letter 6470. It lists six possible reasons you received the letter. One of them does say that a qualifying dependent’s SSN could be missing or incomplete, but that is the fourth possible reason. How can you insist that this is what they claimed but ignore that they had three reasons before it and two reasons after it as possible causes for the letter. For clarity, they said:

        1. your adjusted gross income exceeds $75,000 ($15,000 if married and filing jointly, $112,500 if head of household)
        2. the amount of the RRC was computed incorrectly
        3. our records show that you already received an advance payment of RRC
        4. the Social Security number of one or more of your qualifying dependents was missing or incomplete
        5. the last name of one or more of your qualifying dependents does not match our records
        6. one or more of your qualifying dependents exceeds the age limit

        If one of those reasons applies to you (or anyone else reading this) that’s why you got the letter.

        Did your income exceed those limits but you still got a stimulus check? If so, that’s why you got the letter. If so, do nothing. They recalculated and determined you weren’t due that stimulus and they’ll get it back at some point, likely from a lien on future tax refunds.
        If the amount of your RRC was computed incorrectly, you may not know that, which is why you contact them to find out.
        Did you already receive your stimulus but mistakenly listed on your tax return that you didn’t get it? If so, that’s why they sent the letter. Unless they sent you even more checks, nothing is likely to change. They’re just noting that you already got the check.
        Did you have dependents on your return? If no, this likely isn’t the reason you got the letter. It was one of the above. If yes, get in touch with them to correct the errors, either on your part, or on their part.

        Ultimately, you should call the IRS and address this letter regardless of whether or not any of the above applies to your situation. They’re busy. I know. It may take multiple calls and long waits. It’s annoying. I know. But this is what has to be done. As adults, we all have to do tedious and annoying things. That’s life. But it has to be done. Call, call back, keep calling. Or… right a letter to the IRS about this letter 6470 and let them know that you disagree with what’s on it or that you want to address something you think may be connected to it. The only reason that you shouldn’t contact the IRS about this letter is if you’re okay with everything in it and you want them to make changes to your account based on it. If you don’t want that, don’t ignore this thinking that it’s a scam or it’s too much trouble to go through. Your IRS account could get messed up if you ignore it.

    • #316162
      Mark Bole
      Participant

      I also received a letter from the IRS

      Which letter did you receive?  If it is the 6470 letter being discussed here, that letter did not give a specific reason for the proposed change, rather it listed a variety of possible reasons without stating which one applied.  It was the previous notice they think you received which listed the specific reason (you may or may not have actually received the previous notice, which is what this problem is all about).  If you read this thread, you will find all the information you need to double check what your situation actually is.

      No routine IRS letters “insinuate that [you] tried to commit fraud,” please don’t make wild unfounded claims.

    • #316277
      Jojo Kampan
      Participant

      This 6470 letter is probably a scam, an elaborate scam. First the contact number in the top right corner is all advertisement.

      Although IRS details in the letter are correct, the format and the paper are very different than normal IRS letters. If you call the 800 829 0922 it is IRS number but first thing they ask you to do is enter your SS #. Now I think the phone system can be hacked and this letter invites you to call so they can intercept your information. IRS is flooded with heavy call volume…most likely from this strange letter.

      This needs to be brought to their attention and launch an investigation.

    • #316325
      Mark Bole
      Participant

      Now I think the phone system can be hacked and this letter invites you to call so they can intercept your information.

      Even if it was a scam, what could someone do with a Soc Sec number if they didn’t know the name to go along with it?  If you are concerned about someone filing a false tax return in your name, get an IP PIN from the IRS to prevent it.

      This 6470 letter is probably a scam, an elaborate scam

      Yes, it is so elaborate that they forgot to ask for money, either in the letter or when you call.

      the format and the paper are very different than normal IRS letters.

      Could you please share your analysis of “normal” IRS letters upon which you base this conclusion?  For example, does the paper of this letter have traces of bamboo in it?

       

      • #317082
        Jermaine Tobey
        Participant

        “Could you please share your analysis of “normal” IRS letters upon which you base this conclusion?  For example, does the paper of this letter have traces of bamboo in it?”

        Bravo, sir. You win the internet.

    • #316400
      Patricia Wiley
      Participant

      This is just an update and is not intended to deter anyone from responding to the letter(s) they may have received.  I finally managed to create an online account at the irs.gov website.  I have $0.00 balance due.  I did, however, mail a certified, return receipt requested letter in response to the non-specific form letter I received which for all intents and purposes seems legitimate as the numbers provided are correct and the recording while waiting on hold was directing me to irs.gov/payments.  I have no idea, maybe it was mailed in error.  At any rate, I at least covered myself by responding and requesting a detailed explanation.

      Thanks.

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