A response letter to the IRS should be written in clear language and include factual information. This type of letter includes specific details regarding the issue raised by the IRS and provides a brief explanation along with proof of any action taken by the taxpayer.
The top section of an IRS response letter includes taxpayer identification information such as full name, Social Security Number, address, tax form and the specific tax period. The first paragraph states the purpose for writing the letter and mentions the date of the IRS notification. The second paragraph goes into further detail about the specific tax issue raised by the IRS. For instance, if the agency is claiming additional taxes are owed, begin by making reference to this fact. Additional information explains what action was taken in response to the IRS information.
The response letter can clearly relay that the taxpayer has checked records on file and determined that the IRS information is either correct or incorrect. If incorrect, the taxpayer gives facts that reveal why the information is wrong. If a form was filed that takes care of the issue, the letter alerts the IRS to this fact. The letter should mention any documents being sent with the letter, and conclude by providing contact information for follow up.