IRS Letter 4464C: Am I Being Audited?

 

Many taxpayers understandably feel scared, stressed, and even angry when they receive a Letter 4464C from the IRS after submitting their tax return. But what does this letter mean?

In today’s post, I’ll let you know why you likely received IRS Letter 4464C and what your next steps should be.

Am I being audited if I received Letter 4464C?

I want to answer this question first since this is likely the big question on your mind if you received Letter 4464C from the IRS. You can relax. The answer is no, Letter 4464C does not mean you are being audited. Keep reading to find out what it does mean.

Why did I receive Letter 4464C?

Every year, the IRS selects returns for extra review by their Integrity and Verification Operations department. They complete the review process after a tax return has been filed but before any refund has been issued.

If you received Letter 4464C, it means that either through random sampling or computerized screening, the IRS picked your return to verify the income, withholding, or credit information you provided. If you received this letter, it does not automatically mean that the IRS believes that you submitted incorrect or dishonest information on your tax return.

It is possible, however, that something about your return has flagged it in the system as one that should be reviewed. For instance, if you reported something on your return that doesn’t match other records the IRS has received for you, they will want to give it further review.

What is the IRS verifying if I received a Letter 4464C?

If you received Letter 4464C, the IRS will verify one or all of the following from your tax return:

  • Your income
  • Your income tax withholding
  • Your tax credits
  • Your business income

What should I do after receiving Letter 4464C?

First, make sure you read through the letter a couple of times so you understand the information the IRS is giving you. One thing the letter will explain is that the IRS may contact other people to help them verify the information on your return. For instance, they may contact your employer to make sure the income information you provided matches the employer’s information.

Next, review your return. If you know at this time that there are discrepancies or incorrect information on your tax return, you can (and should) take the steps now to amend your tax return.

However, if you believe that your tax return was completed accurately, then all there is to do now is wait. Letter 4464C will let you know that it can take up to 60 days for the IRS to complete their review and for you to receive any refund money you have coming your way.

If you’d like to check the progress of the review in the meantime, you can check your refund status for free online. Of course, if you have burning questions that you’d like to ask the IRS, you can follow my instructions for speaking to a real person at the IRS. And if it’s been more than 60 days since the date on your Letter 4464C and you haven’t seen or heard any progress, then definitely give the IRS a call.

Another very important note is that if you’ve received a Letter 4464C but you have not filed a tax return, it is very likely that someone is trying to steal your identity. Make sure you immediately follow the directions in the letter for reporting an attempted identity theft to all of these institutions:

  • Internal Revenue Service
  • Banks
  • Credit card companies
  • Credit bureaus
  • Federal Trade Commission
  • Social Security Administration

Do I need to give the IRS anything if I receive a Letter 4464C?

Unlike when receiving a tax audit notification letter from the IRS, you more than likely won’t be asked to provide any type of documentation to the IRS right off the bat. However, during the course of the review, the IRS may contact you to ask for documentation of something they’re verifying. In any case, they will let you know what they need.

Should I get help if I receive a Letter 4464C?

Again, you really shouldn’t be concerned if you’ve received a Letter 4464C. However, if you have questions about your taxpayer rights or you have concerns about issues the IRS hasn’t been able to resolve, you can always contact the free Taxpayer Advocate Service.

If you want someone to help review your tax return or answer other tax questions, you should contact a Certified Public Accountant (CPA) to help answer those for you.

While you’re waiting for the IRS to complete their review, read a few of my related articles:

Can My Business Deduct Meals and Entertainment Expenses?

How to Change Accounting Methods Using IRS Form 3115

 

Amy Northard, CPA

The Accountant for Creatives®
+ taxes + bookkeeping + consulting
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