You probably think the IRS has received your tax return… but are you SURE? I can’t overstate the importance of ensuring IRS correspondence acceptance.
Here’s why:
Imagine this. You’ve finally finished your tax return preparation for the year!
You’ve gathered all of your documents and receipts into a tidy folder on your desktop. You went through all the steps and checked off all the boxes to get your return to the IRS on time. You’re ready to pat yourself on the back, pour a drink, and put your feet up.
But then your phone rings. Your accountant informs you that you owe back taxes from several years back.
You’re stunned! You’ve always prepared your own tax returns and sent them to the IRS before the deadline. So this must be a mistake… Right?
Unfortunately, there are times when taxpayers think they’ve completed their tax return, but the IRS claims it never received them—resulting in back taxes, interest, and often penalties. This is a costly mistake most taxpayers simply can’t afford. And it’s 100 percent preventable.
In this blog post, we will explore the two paths that lead to this undesirable outcome: Electronic filing and traditional mail and share practical steps to avoid such issues.
See also How Long Should A Taxpayer Keep Records?
The Pitfalls of Electronic Filing
In today’s digital age, electronic filing has become a popular method for submitting tax returns and various forms to the IRS. While electronic filing offers convenience and speed, it can also lead to complications if not handled correctly.
When taxpayers send their returns electronically, the IRS provides an acknowledgment upon successful receipt and acceptance. If there are errors in the submission, the IRS will also issue an acknowledgment with error messages or header information.
To prevent potential problems, taxpayers must be vigilant in checking for the “MEF ACK” (Modernized e-File Acknowledgement) after electronically filing their returns. The filing organization usually sends this report through secure means within two working days. Without the MEF ACK, the IRS may not have received the filed return, putting the taxpayer at risk of missing crucial deadlines.
The PITFALLS of Mailed Correspondence
Some taxpayers still prefer traditional mail to send correspondence to the IRS.
However, relying solely on regular first-class mail can be risky, as there is no concrete proof of receipt. A recent court case highlighted this issue when a taxpayer’s claim for a refund sent via first-class mail failed to demonstrate its arrival at the IRS.
To overcome this challenge, Code Section 7502 provides guidance:
If correspondence must be mailed, it is essential to use certified or registered mail with a receipt requested option checked. By doing so, taxpayers can establish a presumption of receipt by the IRS if the postmark is before the deadline. This precautionary step is crucial in defending the date of submission, especially when the IRS is known for strictly adhering to deadlines.
IRS CorrespondEnce Acceptance — The Short Version
Ensuring the acceptance of correspondence by the IRS is of utmost importance to avoid penalties and even legal complications.
Whether filing electronically or through traditional mail, you must stay proactive and take the necessary steps to confirm that your documents reach the IRS and are acknowledged.
- Electronic filings. Keeping a close eye on the MEF ACK is crucial, as it provides immediate feedback on the acceptance status of the submission.
- Traditional mail—Be sure to use certified or registered options with receipt confirmation to establish a solid defense in case of any disputes regarding submission dates
- Enlist the help of a qualified tax professional who you can trust to submit all correspondence with the IRS and state departments of revenue and ensure acceptance on your behalf.
Need help? I specialize in IRS and DOR representation. I can help you get to the bottom of any taxes owed, negotiate a lower rate or payment plan, and make sure you don’t make the same costly mistakes again. Schedule your free consult call now.