IRS Letter 4800C: Changes to Your Tax Return
Receiving letters from the IRS never feels great (unless there's a check inside). Unfortunately, the agency persists in using language that is confusing and scary to most taxpayers. If you've received an IRS letter and you're not sure what it means, you're not alone. Most taxpayers get confused by these notices.
To help you out, we offer many resources about IRS letters on our website. Additionally, most notices have an IRS url that takes you to an official IRS page about the notice. Have you recently received LT-4800C? Then keep reading for more details, or use TaxCure to find a tax pro to help you today.
What Is IRS Letter 4800C?
What does IRS Letter 4800C mean? IRS Letter 4800C means that the IRS is proposing a change to your tax return, and you have the option to agree or disagree.
If you're due a refund, the IRS will hold it until the agency verifies the information on your tax return. If you owe money and don't respond within 30 days, the agency will issue you a Statutory Notice of Deficiency and then start the collection process against you.
Why Did I Receive IRS Letter 4800C?
You most likely received IRS Letter 4800C because there was an inconsistency between the information on your tax return and the IRS's records. Based on the discrepancy, the IRS made changes to your return. The agency uses this letter to alert you about the changes and give you a chance to respond.
IRS Letter 4800C is sent to ask you to verify the amounts or accept the proposed changes. The letter is not sent due to a miscalculation or math error, like the CP11.
Examples of When Taxpayers Receive LT4800C
Like most IRS letters and notices, the LT4800C can be a bit confusing. People are often unsure of why they received the notice, and to get answers, they often head to Reddit. Here are just a few of the threads related to this notice that have been posted in recent years:
- Reversal of tax credit — This taxpayer received 4800C after the IRS reversed a tax credit on their return, but the letter was not the first notice about the changes. This taxpayer had been talking with IRS employees about the issue for months before the agency sent out this letter.
- Disallowed tax credit — If the IRS disallows a tax credit, they will also send you this letter. That happened to this taxpayer one year when they claimed a Premium Tax Credit, but the IRS couldn't find any record of them buying health insurance through the marketplace (which is required if you want to claim this tax credit).
- Increased refund — This internet user did not receive LT-4800, but when she signed in to change the status of her refund, the IRS said that her refund was going to be about $17,000 more than expected. Other Reddit users concluded that it must be due to her not claiming the Premium Tax Credit for health insurance premiums on her tax return. While this type of change is extreme, it's not unheard of, and often, the IRS uses LT-4800C to alert people about these types of issues.
When Does the IRS Send Notice 4800C?
The IRS sends this letter at a variety of different times. One Reddit user noted that she didn't receive LT-4800C until a year and a half after filing her tax return. Then, she responded to the letter right away and was hoping to get her refund as fast as possible. Another commenter said that they received this notice a couple of years after not receiving tax refunds.
What To Do if You Receive LT-4800
First, read the notice carefully. It will explain what information the IRS needs to be verified and why. It will also include any other important information such as any outside information that contradicts your return. It will also list the deadline for a response and include a phone number to contact the IRS directly.
Compare the information listed in the IRS Notice 4800C with your current tax return to make sure that the information the IRS received is correct and that they have the right taxpayer. If you disagree with the letter, get ready to respond quickly or you may lose the chance.
What If You Disagree With the Notice
If you disagree with the changes made to your return, make sure to respond to the IRS by the date on the notice. Explain why you disagree, and provide documents that support your position.
What If You Agree With The Notice
If you agree with the notice you can follow the instructions detailed in the Notice. If the changes lead to a reduced tax refund, the IRS will send you the remaining amount after you respond to the letter. If the changes lead to a tax bill, you can pay in full or explore the payment options in the next section.
How Long Does the IRS Take to Respond?
After you respond to LT-4800C, watch your mailbox closely for a response from the IRS, but don't hold your breath. The IRS's website says that it takes about nine weeks to process responses, and it says that the agency can take up to 180 days to respond to your response.
In some cases, the agency takes months to confirm receipt of taxpayer responses. For example, one taxpayer said that the agency took three months to respond, and the response only confirmed receipt of her letter. It didn't go any further or provide any additional guidance.
How to Pay LT-4800C
The changes detailed in LT-4800C often lead to a tax bill. You can pay the full amount directly through the IRS website from a bank account, debit card, credit card, or digital wallet such as PayPal. If you pay with a third-party payment processor such as Paypal you may be subject to fees. If you cannot pay the amount in full before the date listed on the notice, check out the following options:
- Installment Agreement - If you cannot pay the full amount, you can request to make monthly payments until the amount is paid off in full with interest. With an Installment Agreement, you may also have to agree that the IRS can seize future tax refunds.
- Partial Payment Installment Agreement - This can be an option where you pay monthly payments but are unable to pay the full amount within the collection period, or Collection Statute Expiration Date (CSED). The Collection Statute Expiration Date is typically ten years after the assessment date. When the CSED is reached the remaining balance will be written off. The IRS will revisit your situation every couple of years, and if your finances improve, you may be required to make larger payments.
- Currently Not Collectible Status - If your financial situation does not allow for you to pay your balance you can file for a Currently Not Collectible Status. This means that the IRS will not try to collect from you, but you will continue to receive an annual bill and any refunds will be applied to your debt.
- Innocent Spouse Relief - You have to meet strict criteria to qualify for this type of relief, but it applies in cases where your spouse or former spouse failed to report income or claimed credits without your knowledge. In some cases, you can qualify even if you're still married, but in other cases, your marriage must have ended through death or divorce.
- Offer In Compromise - If you can only afford to pay a portion of your bill, the IRS may write off the rest. You must submit a detailed financial disclosure, proving that you're paying the most you can afford, and for best results, you should work with a tax pro.
What If You Ignore LT-4800C
What if you just ignore this notice? What if you received it months ago and didn't do anything? Well, in that case, the IRS will make the proposed changes permanent, and then, if you owe money, the agency will start sending you bills and demands for payment. Eventually, the IRS may start involuntary collections such as garnishing your wages or taking the funds out of your bank account.
Note that even if the agency makes the changes permanent, there may still be an avenue that you can use to dispute the changes. But once you're in this situation, you should definitely work with a pro who understands the tax codes.
Statutory Notice of Deficiency After 4800C
If you fail to respond to IRS Letter 4800C, you may be issued a Statutory Notice of Deficiency. There are different types of Statutory Notices of Deficiency, but the most common that would be issued in this case is a Letter 3219C.
Letter 3219C is a Statutory Notice of Deficiency that is sent after the taxpayer fails to respond within the deadlines. However, you are still able to challenge the IRS in Tax Court. The IRS cannot pursue the adjustments without your consent or without allowing you to disagree or petition against them. The IRS Letter 4800C allows you 90 days to decide whether you want to agree with the adjustments or decide to petition in Tax Court.
Get Help With Changes to Your Tax Return
Need help with an IRS notice? Confused about the proposed changes to your tax return? Wondering why your refund is smaller than usual? Can't figure out why your tax due is higher than you thought? If you're having these types of concerns, you need a tax pro.
Don't call the big companies. Instead, find a local tax resolution specialist who can provide you with the high-quality help you need. To get started, use TaxCure to search for enrolled agents, CPAs, and tax attorneys in your area.