IRS form number CP2057

[Retaylor2]

Hi.  I received this form a few days ago.  It says that they have 1099s that show income that I failed to report on my 2022 tax forms. One of the items that I failed to report was Social Security for my wife and I. The other item was two payments from a government organization for rental assistance payed to me for a disabled tenant in my rental property.

The thing that I can't wrap my head around, is the fact that both of these items were reported as income in 2022.

The Social Security was reported on the form 1040 page 6 work sheet and the taxable amount carried forward to the 1040. The rental income was reported on Schedule E, expenses deducted and the taxable amount carried forward to the 1040.

There is no contact information on the letter, which gives me two choices, the first is to report the "unreported" income on Schedule 1040-X.  Since the income was reported, this is not a good option.  The second option, is to contact the issuer of the 1099s in question, if I dispute the income, and get them to correct it.  I don't dispute the amount. It is correct. So this is not a good option either.

So, with no valid option offered in the letter and no contact information, what should I do?  Ignoring the notice doesn't seem smart...

Any help would be appreciated. Thanks, Richard

[Mike9241]

see this about the form

https://www.irs.gov/individuals/understanding-your-cp2057-notice 

Does the notice state what to do if you disagree?

if not you have several options

A) call the iRS you might have a long wait or not even get through

1. Call 1-800-829-1040 between the hours of 7:00 AM – 7:00 PM local time.
2. Press “1” for English or “2” for Spanish.
3. Press “2” for “answers about your personal income taxes.”
4. Press “1” for “questions about a form you have already submitted or a payment or to order a tax transcript.”
5. Press “3” for “all other questions about your tax history or payment.”
6. Press “2” for “all other questions about your tax history or payment.”
7. Do not input your Social Security Number when the recording tells you to.
8. Press “2” for “personal- or individual-tax related question.”
9. Press “3” for “all other inquiries.”
10. Wait to be connected to someone at the IRS.

B) UseThe Audit Defense service provided by TaxResources, Inc., also called TaxAudit.com, in partnership with TurboTax. If you paid for Audit Defense and you received a notice, call TaxResources, Inc. at 877-829-9695, or report your notice on their website at http://intuit.taxaudit.com/. Do not contact the tax agency until you have spoken to TaxResources. They may contact them on your behalf.

[Retaylor2]

Only if I dispute the amount reported on the 1099s...

[AmyC]

You are disputing the notice since it says you did not report income that you did report.  Follow these steps:

1. You need to make a copy of your original tax return. 
2. Go through with a highlighter and mark all the forms and worksheets showing  the social security income in one color - like yellow highlighter. 
3. Go through and mark all of the rental 1099 income with a different color highlighter- like blue or green- very different from your first choice.
4. Write a letter stating :
   1. Your name, address, social
   2. Your spouse name, social
   3. Body of letter that you disagree with the findings since you did include all of the income listed. 
   4. Explain that you have included a copy of the original tax return and have highlighted where the income is reported.
   5. Explain each income item on the notice  and the color throughout the forms and worksheets.
   6. Sign the letter you wrote
5. Make a copy for yourself. of the letter and tax return
6. Mark that you disagree with the notice , do not sign the notice
7. Make a stack with the notice on top, your letter below, then on the bottom -your tax return ( plus any worksheets you highlighted)
8. Mail with some sort of tracking to be sure your sensitive information makes it to the destination

You want to write this letter like you are talking to a 10 year old. You want it very simple, neat, orderly.

[Retaylor2]

Hey Amy, thanks for the great advise.  I did the only thing better than that,  I turned it over to a CPA friend who is writing the letter! Thanks again.