Latest Facts and News
- The IRS has increased its use of Letter 4464C in recent years to combat tax fraud and identity theft.
- As of 2024, the IRS aims to process most IRS letter 4464C reviews within 60 days.
- The Taxpayer Advocate Service has recommended improvements to the clarity of IRS Letter 4464C.
- Recent IRS budget increases may lead to more efficient processing of tax return reviews.
Now that you have already received an IRS Letter 4464C, do not panic about it. It’s not as scary as it sounds. It just means the IRS is reviewing your tax return to check some details. This is usually a routine process.
However, ignoring it or responding incorrectly can lead to more than just a delayed refund. You could face penalties, interest, or even the risk of being called in for an audit.
The IRS does not give a second chance to correct mistakes but holds you accountable for any errors. The reality is the fear of tackling this alone and, worst of all, the fear of getting it wrong.
It’s not a good time to hesitate. Instead, stay with us right till the end.
What is IRS Letter 4464C?
IRS Letter 4464C, also called the Integrity and Verification letter, notifies taxpayers that their tax return is under review before issuing a refund.
This letter is issued only after you have submitted your return and before you receive your reimbursement.
What is the purpose of IRS Letter 4464C?The primary purpose of the IRS Letter 4464C is to confirm information such as income, credits, or deductions reported on your tax return. During the entire process, a refund hold may be applied temporarily while the IRS completes its review. Once the tax return review is complete, your refund will either be issued or adjusted based on the findings. |
Also Read → Unified Protection Against IRS Intent to Levy
Why Did You Receive Letter 4464C?
Now that you have IRS Letter 4464C, you’re one among the multitude of taxpayers wondering why it was sent to you. Here are some common causes for your receipt of this letter:
- Identity Verification: To guard against tax identity theft, they check a person’s identity before issuing a refund to someone with multiple identities.
- Refund Accuracy: The agency will check your tax return to ensure the refund amount you requested is actually the amount you are entitled to and is not different from the figure.
- First-time filers: The additional checks may be mailed to you the first time you file as a taxpayer.
- Unusual Refunds: If your refund is slightly higher than in previous years, the IRS may simply review some documents on your return.
- Major Type Change in Income: If such a major change in income occurs, from self-employed to a W-2 job, the IRS validates your tax return.
- Randomly Selected: A review of some returns is conducted based on the determination of random sampling for the IRS performance assessment to maintain the integrity of the data without revealing the privacy status.
Is a 4464C Letter Bad?A 4464C letter is not bad; it merely means the IRS is verifying something in the tax return. Confusion arises, however, as this letter lacks instructions to taxpayers. |
What to Do When You Receive Letter 4464C?
Now that you are well equipped as to what IRS Letter 4464C is and why it might have been sent, let’s dive into the important steps you should take to handle it properly.
Step 1: Do Not Panic
Receiving the letter 4464C wouldn’t mean you have done something illegal if your receipt includes Letter 4464C. “This is not an audit but a standard review of your tax return to ascertain that it is accurate.” Just calm down and read the letter carefully to understand the meaning of it and do not push it off.
Step 2: Review Your Tax Return
Go ahead and check the tax return you filed for the potential discrepancy. Before anything else, ensure that the figures of income, deductions, and credits are reported and fully supported by the documentation.
Step 3: Collect Any Documentation Support
Begin to gather evidence of things that would back your tax return before the IRS:
- W-2s or 1099 forms to show the income is substantiated.
- Receipts of deductions or expenses.
- Tax credit documentation, whether for child or educational credits.
- Prepared and available documentation ensures readiness for IRS requests.
Step 4: Determine If You Need to Reply
In most instances, one does not need to respond immediately, unless the IRS specifically orders a request for additional information. The review process is concluded within 60 days. It will either approve the return or allocate it against any newly discovered findings.
Potential Outcomes of the 4464C Review
When the IRS issues an IRS Letter 4464C, it indicates that your tax return is under review to verify its accuracy. This review can lead to several potential outcomes:
Full Refund Approval
If the IRS confirms that all information on your return is accurate, your refund will be processed in full. The IRS aims to complete these reviews within 60 days.
Partial Refund Adjustment
If discrepancies are found, such as errors in reported income, withholding, or credits, the IRS may adjust your refund amount accordingly. In such cases, you will receive a notice detailing the changes and the reasons behind them.
Refund Denial
In instances where significant issues are identified, the IRS may deny the refund entirely. This could occur if the return is deemed fraudulent or if the claimed refund lacks substantiation. You will be notified of the denial and provided with information on how to appeal the decision.
Further Investigation
If the review uncovers substantial concerns, the IRS may initiate a more in-depth examination, potentially leading to an audit. This process involves a comprehensive evaluation of your tax return and supporting documents.
How to Check Your Review Status?
It is very important to know how far the IRS process of reviewing goes, and it helps you to be alert for any potential issues early so you can resolve them without delays. Below is how to check the refund’s 4464C status:
- Watch Over Progress: Track refunds from this IRS “Where’s My Refund?” tool and stay up to date while under review.
- Catch Up: Identify if there are 60 days gone by without a call or your refund and go for an IRS call to ask for a status update. This timeline can certainly help with planning and being organized towards the management of any delay.
Know the Dos and Don’ts for handling IRS Letter 4464C
| Do’s | Don’ts |
| Read the Letter Thoroughly: Understand why your return is being reviewed. | Don’t Get Worked Up: This isn’t an audit; stay calm and handle it step by step. |
| Verify Your Return: Ensure your income, credits, and deductions are accurate. | Don’t Ignore the Letter: Follow the timeline and take action when needed. |
| Organize Supporting Documents: Gather documents like W-2s, receipts, and tax credit forms. | Don’t Provide Incorrect Information: Always double-check your answers before submitting. |
| Check the Status of Your Refund: Use the IRS “Where’s My Refund?” tool for updates. | Don’t Contact the IRS Prematurely: Wait for 60 days unless the IRS specifically requests information. |
| Respond Quickly if Requested: Provide additional documents promptly if asked. | Don’t Delay Seeking Help: Contact Hall’s IRS if you’re unsure about your next steps. |
Final Thoughts!
Coming to the end of this blog simply means we have covered all that you had in mind about the letter 4446C. But let me tell you one thing that no one will, that is the data discrepancies between the IRS and the third-party sources, like between the employer or the financial institutions, can many times trigger the IRS letter 4464C.
The IRS has access to a lot of information, including wage and income statements (such as W-2s and 1099s), and if there’s even a small mismatch between the data on your tax return and what the IRS has on file, it can lead to a review.
This is why it’s crucial to double-check all the details, even if you believe your return is accurate. Many taxpayers are surprised to learn that even minor errors, like typos or incorrect income reporting, can trigger this review process.
Don’t hesitate to reach out to Hall’s IRS if you need assistance. Handling the situation correctly can save you time, stress, and potential penalties.
FAQ's
No, IRS Letter 4464C is not an audit; it is a routine IRS notice to indicate that your tax return is under review to establish its accuracy. Hall’s IRS can help clarify the distinction and give a guide on what this can mean for your situation.
The review typically happens within 60 days from the date of the letter. In cases of delays or any additional lapses, Hall’s IRS will be there to make sure you are informed and prepared every step of the way.
Yes, you remain eligible for your refund; however, it will be withheld until the review is done. Hall’s IRS can help ensure you take all the proper steps to resolution without glitches.
If you see an error, you will most likely have to amend your return through Form 1040-X. Hall’s IRS can examine your return and possibly rectify it for you to prevent any confusion.
No, the receipt of IRS letter 4464C usually does not have any impact on future tax filings, as long as no issues remain unresolved. Hall’s IRS can also advise on how to keep compliant and avoid future worries.
IRS letter 4464C sample
Below is an example of what IRS Letter 4464C typically looks like. This letter is sent by the IRS to inform taxpayers that the Integrity & Verification Operations team is reviewing the accuracy of their filed tax returns. It also confirms that the IRS has received the return and explains that the review process is to ensure accuracy and tax identity theft prevention or errors.
If you’ve received a letter like this, it’s important to understand it’s not an audit but a routine review. Should you have questions or need assistance handling this letter, Hall’s IRS is here to guide you through the process.
Note: Personal details in this sample are removed to maintain privacy.
