To "Champ",
Thank you for an excellent and very thoughtful reply. Very very helpful! I now think I understand better. Ok, I now understand that I should prepare a response letter explaining the situation and a copy of my tax return with the Health Coverage Tax Credit (HCTC) removed. I would then fax the explanation letter, the IRS letter and the corrected tax return to the Fax number they provided.
However, I still have a few questions:
(1) Should I send my entire tax return to the IRS in this fax or just those pages that have changed? Elsewhere I have seen cautions about sending the IRS too much information.
(2) Should I still file an amended return (i.e. using form 1040-x) at some future date? If so when should that future date be?
Again, many thanks for your terrific help!
-Doug Keil
