Receiving a tax notice or letter is never a pleasant experience. It can be confusing and frustrating if you don't understand why you received the notice in the first place. That's why we wrote The Ultimate Guide to Tax Notices and created a tax notice library filled with the most common tax notices and letters you might receive. We believe the process of staying compliant with your taxes should be as effortless as possible.
General Information
- What is the notice number? LTR99C
- What government agency sends this notice? The Internal Revenue Service (IRS)
- What is this notice about? The IRS found a difference between what you reported on employment tax returns (Forms 941, 943, 944, or Schedule H) and what you reported on Form W-2. If you don’t respond within 45 days, you may owe more taxes, plus penalties or interest.
- What should you do if you receive this notice?
- Check your records for any missing or inaccurate forms.
- If needed, file missing returns and attach them to Letter 99C.
- If you disagree, include a brief signed explanation.
- If corrections are required, include amended forms or returns.
- Respond by the deadline to avoid extra tax, penalties, or interest.
FAQs & Additional Information
- Why am I getting a copy of this notice when my accountant or payroll service handles my filings? Your accountant or payroll service provider also gets a copy directly from the IRS, so everyone can address any errors or missing information promptly.
- How should I respond if I feel overwhelmed by the process? A short response is fine. Briefly note what you’re doing or why you think there’s no error, and consider consulting a tax professional if you’re unsure.
- What if I need to amend returns to fix the discrepancy? Include your amended returns behind the Letter 99C and response page, making sure the changes don’t create new mismatches.
- Is there a penalty if I don’t respond in time? If you don’t reply within 45 days, the IRS may assess additional tax, plus penalties and interest.
- How do I know my response has been received and processed? You might get a follow-up notice or you can call the number on the letter to confirm your case status.
- Can I resolve everything electronically? The notice typically requires mailing or faxing your signed response and any corrected forms; follow the specific instructions provided.
What does it look like?
Resources
Looking for more information about this notice? Here are some helpful resources:
- About the notice - https://www.irs.gov/businesses/small-businesses-self-employed/combined-annual-wage-reporting-employment-tax-problem-inquiries
How can we help you today?
Are you looking for more information about your tax notice or other challenges? DiMercurio Advisors has a dedicated team supporting tax notices, audits and more. We are passionate about ensuring you are well-informed and in control of your tax situation.
