Receiving IRS Letter 4800C can be unsettling, but it’s essential to understand that this letter is a proposed change, not a final determination. The IRS issues this notice when it finds discrepancies between your tax return and the income or credits reported by third parties, such as employers, banks, or health insurance marketplaces. Timely action is crucial to preserve your rights and avoid adverse tax consequences.
What does this mean for me?
The IRS is proposing to adjust your tax return based on information it received that doesn’t match your reported amounts. This could affect your income, tax credits, withholding, or all of the above. As a result, your refund may be delayed, reduced, or converted into a balance due unless you respond within 30 days of the letter’s date.
How did I get here?
When processing your return, the IRS attempted to verify wages, withholdings, and refundable credits—such as the Premium Tax Credit or the American Opportunity Tax Credit—against information provided by third parties. If these records don’t align, the IRS proposes changes to your wages, withholdings, or credits. These changes may also affect other claimed benefits, such as the Earned Income Tax Credit or the Additional Child Tax Credit.
What are my next steps?
1. Respond within 30 days: If you don’t respond, the IRS will automatically adjust your account and may issue:
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- Letter 3219C – Statutory Notice of Deficiency (you have 90 days to petition the Tax Court),
- Letter 0105C – Claim Disallowed, or
- Letter 0106C – Claim Partially Disallowed.
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2. Gather and send supporting documentation, including:
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- Pay stubs or a letter from your employer verifying employment dates, gross wages, and withholdings;
- Form 1095-A (for health coverage through the Marketplace);
- Proof of education expenses (cancelled checks, tuition receipts, class lists, transcripts, etc.).
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3. Do not file a Form 1040-X (amended return) at this stage. The IRS will review the submitted documentation first and adjust your account accordingly.
4. Submit your response via the fax number listed in the letter or by mail using the provided envelope. If using an online fax service, be sure to understand their privacy and data security policies.
5. If you agree with the proposed changes, sign and return the form enclosed with the letter. You will receive a bill for the amount due, including interest and penalties.
6. If you disagree, send a statement explaining your position along with supporting documents. If you’ve already submitted your documentation and still disagree with the proposed changes, you may request a conference with the IRS Independent Office of Appeals.
7. If you did not file the tax return in question, contact the IRS immediately. This could be a case of tax-related identity theft.
Relevance to Taxpayers
Letter 4800C highlights the importance of accurate reporting and maintaining documentation for all income and credits claimed. Failing to respond can lead to adjustments you may not agree with, loss of refunds, and even legal action. This letter may also uncover identity theft issues requiring urgent resolution.
We Can Help!
At Juarez Hernandez Tax Law, we provide full legal support for IRS inquiries, including responding to Letter 4800C, representing taxpayers in appeals, and guiding clients through resolution strategies. Quick and informed action—backed by professional representation—can make all the difference.
Contact our office to schedule a confidential consultation today!