Resolve IRS missing information letter

What an IRS “missing information” letter means - The IRS sends letters and notices when it needs more information, has corrected a return, identifies a mismatch, or believes a return or payment is missing.

Notices include specific codes (CP, LTR) you can look up on IRS.gov to learn what they mean. (See: IRS “Understanding your IRS notice or letter”). First steps when you receive a letter

What an IRS “missing information” letter means

• The IRS sends letters and notices when it needs more information, has corrected a return, identifies a mismatch, or believes a return or payment is missing. Notices include specific codes (CP, LTR) you can look up on IRS.gov to learn what they mean. (See: IRS “Understanding your IRS notice or letter”). First steps when you receive a letter

Verify authenticity and read the notice carefully. The IRS’s official guidance is to “Review it carefully and keep it for your records.” (IRS). Note the notice number, deadlines, and requested documents.

Take timely action. The IRS warns that taking timely action could minimize additional interest and penalties and you should only reply if instructed. Use the phone number or address on the notice when contacting the IRS. (IRS newsroom guidance).

Don’t over-correct

only provide the specific materials requested; if you agree with an IRS correction, follow the instructions; if you disagree, explain in writing and attach supporting documents. Common causes for “missing information” letters relevant to businesses/LLCs - Information return mismatches (1099s reported to IRS vs amounts on your return; incorrect TIN/Name combinations) - Missing or incomplete forms or schedules supporting entries on returns - Incorrect or missing Employer Identification Number (EIN) or other identification data - Unfiled returns the IRS believes should have been filed (See: IRS guide to information returns and IRS Letter 12C description.) Key deadlines and example specifics - Letter 12C: IRS says “Send the information we requested within 20 days.” If you disagree, respond with a clear explanation. (IRS: Understanding your Letter 12C). - Many IRS notices include discrete response windows—always follow the deadline shown on the specific notice; missing a deadline can limit appeal rights. Step-by-step response process (practical checklist for businesses/LLCs)

Read and document

record notice number, tax year, deadlines, amounts, and contact information from the notice.

Verify authenticity

IRS notices are mailed (and sometimes appear in secure IRS online accounts)—do not respond to unsolicited email/phishing requests.

Gather supporting records

tax returns, ledgers, invoices, bank statements, payroll records, contracts, Forms 1099/1096, W-2s, and any corrected information returns. 4. Compare IRS data to your records: if mismatch arises from third-party information returns (1099), reconcile with your books and vendors/contractors; issue corrected 1099s and file corrected transmittals if needed (see IRS info returns guide).

Draft response

if you agree, follow notice instructions (sign and return if required; pay if amount due). If you disagree, send a concise written explanation and include copies (never send originals). Include a cover letter listing the enclosures and your contact and EIN/TIN. - Example brief template language: “Enclosed are copies of the documents you requested for tax year XXXX. I disagree with the proposed adjustment because [brief reason]. Enclosures: [list]. Please contact me at [phone/email] if you need additional information.”

Use power of attorney when appropriate

if a tax professional represents the business, submit Form 2848 so the IRS will speak with your representative. (IRS notices pages point taxpayers to authorization tools and Form 2848 resources.)

Send and track your response

where mail is required, send via a trackable method (certified mail or delivery with tracking); keep copies of everything you send. If the notice includes a contact stub or secure online response path, use that method per IRS instructions.

Follow up and escalate if necessary

if you don’t receive confirmation or resolution within the time stated, use the IRS contact on the notice, contact the Taxpayer Advocate Service (TAS) if IRS delays or procedural problems persist, or engage a tax professional. When to contact the Taxpayer Advocate or a tax professional - Use TAS when you’re experiencing economic harm, significant delay, or when you can’t resolve the issue with normal IRS channels. TAS offers an interactive roadmap and local offices to help. For complex disputes, audits, or collection threats, engage a CPA, EA, or tax attorney (IRS and TAS both recommend professional representation when appropriate). Appeals and protections - If you disagree with an IRS adjustment, the notice will explain how to contest it—respond by the deadline to preserve appeal rights. Taxpayers have rights including the right to appeal and the right to representation. (IRS: Understanding your IRS notice or letter). State-level considerations for US businesses - State revenue agencies often rely on the same information return filings (1099/1096) and can issue similar notices when state filings don’t match reported income or withholding. If a federal notice reveals an error that affects state returns (e.g., unreported income or incorrect withholding), you should: - Check the affected state(s)’ Department of Revenue guidance and correct state returns if required. - Notify state agencies if necessary and follow their procedures for corrected information returns or amended state returns. - Be aware some states have different deadlines and filing formats for information returns—consult the state revenue website or a state tax professional. (IRS information returns guidance + TAS resources; state-specific instructions vary by state—include links to relevant state DOR sites in the final blog targeting state readers.) Practical tips to avoid future notices (preventive best practices) - Confirm TINs and names for vendors/contractors before issuing 1099s (request a W-9 and validate TINs via IRS TIN Matching for payers using IRS e-services). - Reconcile your books against issued 1099s and bank records annually. - Use correct entity classification (LLC single-member vs multi-member) to ensure returns are filed in right form and with correct EIN usage. - File and furnish information returns on time; promptly issue corrected 1099s when errors are found. - Maintain an organized records-retention system and document responses to any IRS correspondence. Delivery, tracking, and documentation best practices - Send responses by tracked mail (certified mail with return receipt is common), or use the IRS-specified contact/stub or secure online response portals if offered. Always keep copies of what you send.