IRS sending incorrect and incomplete Recovery Rebate Credit notices - Spidell

IRS sending incorrect and incomplete Recovery Rebate Credit notices


The IRS is sending taxpayers Letter 6470 notifying them of “errors” in the Recovery Rebate Credit claimed on their 2020 income tax return. The letters are vague and confusing for a few reasons:

  • Letter 6470 is supposed to be a follow-up to Notice CP11, CP12, or CP13, but many taxpayers never received the first notice;
  • The letters do not state the actual dollar amount changed on the return, nor the reason for the change;
  • Many taxpayers already received their full refunds, as reported on their income tax returns, including the claimed Recovery Rebate Credit; and
  • Many of the letters appear to be incorrect.

Officially, Letter 6470 is a math error notice, which means that a taxpayer has 60 days to notify the IRS that they disagree with the letter. Help your clients who received these notices set up an online account at www.irs.gov to verify the Economic Impact payments they received, and compare to the amounts reported on the taxpayers’ returns. If the Letter 6470 was issued incorrectly, contact the IRS at the number on the notice or respond by mail within 60 days.

To help taxpayers access or set up their online account, go to:

www.irs.gov/payments/view-your-tax-account

Subscribe to Spidell’s Federal Taxletter and in the November issue you will get more information on Letter 6470 and how to help your client set up an IRS account to verify their Economic Impact Payments. Click here for details.