What This Letter Means
Letter 4551C comes from the IRS Business Master File Underreporter (BUR) program. That program compares income and deductions reported on corporate returns (Form 1120) and estate and trust returns (Form 1041) with information the IRS received from third parties. When there's a mismatch, the IRS sends Letter 2531 or Letter 2030 proposing changes. Letter 4551C is one of the follow-up letters tax examiners use to give you information about that case.
Most often it's the closing letter. Depending on your situation, it can tell you:
- The IRS accepted your explanation and is accepting the return as originally filed.
- The case was closed with the adjustments you agreed to, or with a partial agreement.
- The IRS made a change to withholding or other prepaid credits, or disallowed withholding you couldn't document, and you'll get a separate adjustment notice.
- Your case or your payment plan request was sent to another IRS office.
- The IRS made no adjustments because it didn't get a response to its earlier notice.
What to Do
- Read the special paragraphs. The specific message for your case is written there.
- Compare it with the earlier notice and your response. Make sure the result matches what you agreed to.
- Watch for a separate adjustment notice if the letter says the tax or credits changed. That notice shows the result.
- If it says you can file an amended return when you have more documentation, that's your route to have the IRS consider new information.
- Keep the letter. If the same issue comes up in a later year, a copy of the prior closing letter helps show it was already resolved.
If anything in the letter doesn't match your records, call the number on the letter before you assume the matter is over.
If you received Letter 4551C and the result doesn't look right, call us at (813) 229-7100.