What This Letter Means
Letter 474C, Math Error Explained, is sent to individual taxpayers. It tells you the IRS changed your tax or credits and explains why. When the explanation is complicated, the IRS may include a copy showing your figures next to its corrected figures.
Common situations:
- You filed an amended return (Form 1040-X) and the IRS corrected a line before processing it. The letter says which line it corrected and why.
- A clean vehicle credit was removed because the vehicle identification number couldn't be validated.
- A claim of right credit under IRC 1341 was disallowed.
- You answered a Letter 324C request but didn't send everything, so the IRS processed only what it could. The letter states what you didn't provide.
If the change creates a balance due, the letter shows it.
Your 60-Day Right
When the IRS changes a return under its math error authority, IRC 6213(b) gives you 60 days from the date of the notice to ask for the change to be reversed. If you mail your request, the postmark date counts. The IRS can't levy to collect the math error amount during that 60 days. If you ask in time, the IRS must reverse the assessment. To pursue the issue after that, it has to use normal deficiency procedures, which carry Tax Court rights.
Miss the 60 days and you lose that simple remedy. You still have other ways to dispute it, including collection due process rights if collection starts, but they are harder.
What to Do
- Read the explanation and compare it to your return.
- If the IRS is right, pay any balance or set up a payment plan.
- If you disagree, write back within 60 days. Explain why and include documents that support your numbers. Faxing may be an option; ask at the number on the letter.
- Keep copies and use certified mail.
If you received Letter 474C and the change is wrong, call us at (813) 229-7100.