The IRS sends certified letters for serious and important tax-related matters that require proof of receipt and timely response. Certified letters are used to:
- Fulfill legal requirements, such as notifying taxpayers about potential Tax Court appearances or final warnings before enforcement actions.
- Notify about IRS collection activities like liens, levies, or asset seizures for unpaid taxes.
- Request additional information or clarification about tax returns or conduct correspondence audits.
- Provide an official and verifiable record that the taxpayer received the notice, especially for time-sensitive issues.
These letters often come with deadlines and require prompt attention because failure to respond could lead to severe consequences, including enforced collection actions by the IRS. Certified mail ensures the IRS can prove the letter was sent and received, starting the clock for any deadlines mentioned in the letter. Receiving a certified letter from the IRS doesn't always mean bad news, but it signals an important issue that needs addressing, such as a balance due, audit, identity verification, or final notice of levy.
