After you file

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.