If you’ve received IRS Letter 915, also known as the 30-Day Letter, it means the IRS has completed an audit of your tax return and intends to make changes. This letter is a pivotal moment in the examination process—it offers you the opportunity to agree with or challenge the proposed adjustments before they become final. It must not be ignored.
What is Letter 915?
Letter 915 is not a bill or final notice. Instead, it informs you that the IRS auditor has completed their review and is proposing changes to your return. These changes might include disallowed deductions, additional income adjustments, or penalties. The letter is typically accompanied by:
- Form 4549 – Report of Income Tax Examination Changes, outlining the proposed changes.
- Publication 1 – Your Rights as a Taxpayer.
You are granted 30 calendar days from the date on the letter to respond. This is a critical window to present your case before the matter escalates to a formal deficiency notice.
What Do I Do if I Receive Letter 915?
Upon receiving Letter 915, you have two primary options:
1. Agree with the proposed changes: If you find the IRS’s findings accurate, you may sign and return Form 4549. This ends the audit process, and the IRS will proceed with assessing the revised amount.
2. Disagree with the findings: If you believe the IRS made an error or overlooked key documentation, you may file a formal written protest and request that the case be reviewed by the IRS Office of Appeals, an independent body within the agency.
Filing a Protest Letter
If you choose to dispute the adjustments, your protest letter should include:
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- Your name, address, and taxpayer identification number,
- A statement that you are requesting an appeal,
- A list of each issue with which you disagree,
- A brief explanation of your position for each disputed item,
- Any supporting documents,
- A copy of the IRS report (Form 4549).
For proposed adjustments exceeding $25,000 per tax year, the IRS requires a formal written protest. For smaller amounts, a small case request may be sufficient.
What Happens if I Don’t Respond?
Ignoring Letter 915 leads to the issuance of a Notice of Deficiency (Letter 3219). This formal legal notice gives you 90 days to petition the U.S. Tax Court, after which the IRS may begin collection actions. By not responding to Letter 915, you lose the opportunity to resolve the matter administratively and without litigation.
We Can Help!
For taxpayers, understanding and responding to Letter 915 is crucial. It represents a turning point in any IRS audit. The appeal process available at this stage is less adversarial, more flexible, and potentially more favorable than later litigation.
Moreover, taxpayers should recognize that agreeing to adjustments without full understanding can result in overpayment, unnecessary penalties, or interest. A well-prepared and timely protest can significantly reduce or eliminate the proposed changes.
At JH Tax Law, our team can help protect your rights and minimize potential liabilities. If you’ve received Letter 915 and are unsure how to respond, contact our office for a confidential consultation today!
