The Letter 105C is sent by the IRS to inform taxpayers that their claim for a tax credit, deduction, or refund has been denied or only partially allowed. This letter is typically issued after the IRS has reviewed the taxpayer’s claim and determined that they do not qualify for the full amount requested.
Key points in Letter 105C:
- Reason for Denial or Disallowance: The letter will explain why the IRS has denied or partially disallowed the claim. This could involve issues like insufficient documentation, ineligibility for a tax credit, or errors on the original tax return.
- Right to Appeal: Taxpayers have the right to appeal the IRS’s decision if they believe the claim should be allowed. The letter will provide instructions on how to file an appeal, including the deadline for submitting additional documentation or requesting reconsideration.
- Partial Allowance: In cases where the IRS partially allows the claim, the letter will specify the amount that has been approved and provide details on how the remaining amount was disallowed.
- Next Steps: Taxpayers can either accept the IRS’s decision or dispute it by providing additional documentation to support their claim. The letter will include instructions for both options.
Letter 105C is important for taxpayers to review carefully, especially if they believe the IRS’s decision was incorrect, as they have the right to appeal or provide further evidence.