The IRS issues Letter 12C, titled “Request for Information – Individual Return,” when a taxpayer’s submitted Form 1040 cannot be processed due to missing, incomplete, or inconsistent information. While this letter does not constitute a formal notice of deficiency or an immediate tax assessment, it must be treated with urgency and due diligence to prevent adverse tax consequences.
This article provides an overview of Letter 12C, its legal implications, and the appropriate steps taxpayers should take upon receipt.
Legal Nature and Purpose of Letter 12C
Letter 12C is an informational request. It is not an audit, but rather an administrative action intended to secure supplemental documentation necessary to validate or complete a taxpayer’s return.
Common scenarios in which Letter 12C is issued include, but are not limited to:
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- Omission of Form 8962 (Premium Tax Credit);
- Missing Form 1095-A (Health Insurance Marketplace Statement);
- Unsubstantiated dependent claims;
- Incomplete income or deduction schedules.
Until the requested information is provided, the IRS will suspend further processing of the return, including the issuance of any refund.
Required Action and Procedural Timeline
Taxpayers are typically afforded a 20-day response window from the date of the letter. The IRS requires that all requested documentation be submitted by mail or fax — electronic submission is not currently permitted for responses to Letter 12C.
A complete and timely response should include:
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- The specific forms or schedules requested (e.g., Form 8962, if applicable);
- A copy of Form 1095-A, if received from a state or federal health exchange;
- A copy of the original Form 1040, including all previously submitted schedules;
- The identifying information or barcode included with the letter.
Failure to provide the requested documentation within the allotted time may result in the IRS disallowing the relevant credits or deductions, recalculating the taxpayer’s liability, and potentially issuing a balance due notice.
Legal Consequences of Non-Compliance
While Letter 12C does not initiate a formal examination or enforcement proceeding, non-compliance may result in:
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- Denial of the Premium Tax Credit or other refundable credits;
- Reduction or forfeiture of any anticipated tax refund;
- Assessment of additional tax based on adjusted calculations;
- Issuance of further statutory notices, including a Notice of Deficiency under 26 U.S.C. § 6212, if discrepancies persist.
For taxpayers relying on advance premium tax credits through the Health Insurance Marketplace, failure to submit Form 8962 may also result in a recapture of credits previously applied during the tax year.
Professional Considerations
Given the legal and financial implications, taxpayers are strongly advised to:
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- Review the letter in its entirety and note any specific IRS requests;
- Retain copies of all documents submitted;
- Seek the assistance of a qualified tax professional or legal counsel if unsure how to respond;
- Avoid speculative or incomplete submissions, as they may delay resolution or trigger further scrutiny.
We Can Help!
At Juarez Hernandez Tax Law, we provide strategic representation in matters involving IRS correspondence, compliance, and administrative resolution. Our team assists both individual and institutional clients in responding to IRS Letters, including Letter 12C, and in mitigating downstream enforcement actions.
If you have received IRS Letter 12C and require legal guidance in preparing a timely response, we invite you to contact our office for a confidential consultation.