What Should You Do If Your IRS Records Don’t Match Your Tax Return?

You pull your IRS records and something doesn’t look right.

Maybe income appears that you don’t recognize.

Maybe information you expected to see isn’t there.

Maybe a payment doesn’t appear where you expected.

Or perhaps the numbers simply don’t seem to match the tax return sitting in your files.

Don’t ignore it—but don’t immediately assume the worst either.

A difference doesn’t automatically mean you did something wrong.

Your first job is figuring out what caused the difference.

Start With Your IRS Records

The IRS allows taxpayers to access several types of tax records and transcripts.

Through the official IRS tax records and transcripts service, taxpayers may be able to view, print or download transcripts and access other tax-account information.

That can give you an independent starting point for comparing what’s in IRS records with the documents in your possession.

1. Gather the Documents You Already Have

Pull together your records for the tax year you’re reviewing.

Depending on your situation, that might include:

• Your filed tax return

• W-2s

• 1099s

• Business income records

• Estimated tax payment records

• IRS notices and correspondence

• Relevant IRS transcripts

• Supporting documents used to prepare the return

Then compare the information carefully.

Don’t rely solely on memory.

2. Identify Exactly What Doesn’t Match

Instead of saying, “My IRS records are wrong,” identify the actual discrepancy.

Is it related to:

Income?

Withholding?

A tax payment?

A missing tax return?

A W-2 or 1099?

Business income?

Something you don’t recognize at all?

The type of discrepancy can change what needs to happen next.

Don’t Automatically File an Amended Return

Finding a difference doesn’t necessarily mean your original tax return was incorrect or that an amended return should immediately be filed.

First determine what caused the discrepancy.

For example, an information document could contain an error, records may require additional context, or further research may be necessary.

Making another filing before understanding the original issue can potentially create more confusion.

When you’re uncertain, consider having a qualified tax professional review the records before taking action.

3. Download It. Save It. Protect Your Records.

When you’re reviewing an IRS issue, documentation matters.

If you obtain relevant IRS records or transcripts, save appropriate copies with your tax documentation.

A dated document can help establish what information you were reviewing at that point in time and give your tax professional clearer information if additional research becomes necessary.

Download it. Save it. Protect your records.

Your tax file shouldn’t consist solely of the final return.

Maintaining supporting records can make future questions much easier to address.

Protect Your Personal IRS Account

You may need professional assistance understanding a discrepancy.

That doesn’t mean you should automatically give someone your personal IRS online account password or authentication codes.

You can access your own records through the IRS Individual Online Account and securely provide appropriate documentation to your tax professional when necessary.

If professional authorization is needed, established IRS authorization procedures are available.

Your passwords should remain under your control.

4. What If You Don’t Recognize the Information?

Unrecognized tax information deserves attention.

It could have a straightforward explanation—or it could require additional investigation.

Don’t simply delete or disregard an IRS notice, unfamiliar income item, or unexpected account information.

Document what you’ve found and determine whether professional assistance is appropriate.

If you suspect tax-related identity theft or another serious issue, use official IRS resources rather than relying on social media advice or an unsolicited caller claiming to represent the IRS.

5. Know When to Get Professional Help

   
   

Some discrepancies can be resolved relatively easily.

Others may involve:

• Incorrect information returns

• Unreported income

• Missing filings

• Payment discrepancies

• Business reporting issues

• Identity-related concerns

• IRS correspondence

• Prior-return errors

• 
  

Those situations may require additional research before determining the appropriate next step.

Your Tax Return Shouldn’t Be Something You File and Forget

Financial responsibility doesn’t end when you press “submit.”

Keep your tax records.

Review unexpected correspondence.

Pay attention when something doesn’t match.

And address discrepancies before they have an opportunity to become larger problems.

For individuals and small business owners in Jacksonville, St. Johns County, FL, and St. Louis, MO, CoreLogix Consulting, LLC provides tax preparation, bookkeeping and accounting support designed to help clients better understand the numbers behind their financial records.

Stop leaving money on the table. Make financial responsibility the standard.

CoreLogix Consulting, LLC

980-980-8191

CoreLogixConsulting.com

This article is provided for general educational purposes and is not individualized tax or legal advice. The appropriate response to an IRS discrepancy depends on the taxpayer’s individual facts and circumstances.