What This Letter Is

Letter 2625C goes to an employer or other payer, not to the person whose tax return is under review. The IRS uses it in its Automated Underreporter program, the unit that matches tax returns against Forms W-2 and the Form 1099 series. The letter asks you, the payer, to clarify income you reported and to complete and return the form the IRS sends.

Why You Received It

Someone you issued a W-2 or 1099 to told the IRS the income isn't theirs, that they don't know you, or that the amount is wrong. The IRS contacts a payer only after that person returns a signed Form 2624, Consent for Third-Party Contact, for that specific payer. A copy of the signed Form 2624 comes with the letter.

What to Do

  • Pull your records for the name and Social Security number on the letter.
  • Confirm whether you paid this person, how much, and what you reported.
  • Complete the response and return it by the date in the letter.
  • If your records show the form went to the wrong person or reported the wrong amount, say so plainly and give the correct figures.
  • Keep a copy of what you send.

What Happens With Your Answer

If your response shows the income doesn't belong to the taxpayer, the IRS uses it to resolve their case. If your response confirms the income is theirs, the IRS sends the taxpayer a letter with a copy of your response.

If you are an individual rather than a business and you tell the IRS you fear reprisal, the IRS accepts that at face value. Your name is removed from the copy of your response sent to the taxpayer.

If You're the Taxpayer

If you disputed a W-2 or 1099 and signed Form 2624, the IRS should tell you it is contacting the payer and that it will contact you again within 60 days. Keep answering any IRS letters on your case while you wait.

If you received Letter 2625C or the underlying income dispute is yours, call us at (813) 229-7100.