Need Help with LTR 324C about Filing Status Clarification

Don't panic! LTR 324C is just a request for more information, not an audit or a bill. The IRS sometimes sends these out when something on your return doesn't match their records or needs verification. For filing status verification, you'll need to prove you were eligible for whatever status you claimed. If you filed as Head of Household, you'll need to show you paid more than half the cost of keeping up a home and had a qualifying person living with you. If you filed as Married Filing Jointly, you might need your marriage certificate. Single status usually doesn't get questioned unless they think you might qualify as something else. The letter should have specific instructions about what documents they want and where to send them. Make sure you respond by their deadline (usually 30 days) and keep copies of everything you send.

I went through something similar last year with a LTR 324C questioning my Head of Household status. I was totally overwhelmed by all the documentation needed until I found taxr.ai (https://taxr.ai) which saved me so much time. I uploaded the IRS letter and my tax documents, and it basically told me exactly which docs I needed to respond and helped me draft a response letter. The coolest part was that it spotted an issue with my ex claiming our kid as a dependent in the same year (which I didn't know about) - that was probably the "third party information" causing the IRS confusion. The tool walked me through how to prove I had primary custody and was entitled to claim HoH status.

I was super skeptical about using taxr.ai when I read about it here last month, but my situation with the IRS was getting complicated and I was desperate. Man, I'm glad I tried it! I had a similar LTR 324C letter because my ex and I were both trying to claim Head of Household and the same dependent. The tool immediately identified the conflict and created a custom letter for me explaining why I qualified. It even gave me a checklist of documents to include (my daughter's school records, medical bills I paid, utility bills in my name). Got a letter back from the IRS three weeks later confirming my status was accepted! Would have been completely lost trying to figure this out on my own.

If anyone's struggling to get actual help from the IRS about these letters, I highly recommend Claimyr (https://claimyr.com). I spent DAYS trying to get through to the IRS about my LTR 324C filing status issue - constant busy signals or disconnects after waiting forever. Claimyr got me connected to an actual IRS agent in under an hour! The agent walked me through exactly what documents they needed to verify my filing status and even gave me an extension on the response deadline since they could see I had been trying to contact them. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c. Literally saved me weeks of anxiety and probably avoided penalties for late response.

I owe everyone here an apology, especially to Profile 7. I was totally wrong about Claimyr. After posting that skeptical comment, I was still desperate with my own LTR 324C issue and decided "what the hell" and tried it. I had spent literally 8+ hours over 3 days trying to reach the IRS myself with no luck. Used Claimyr yesterday afternoon, and got a call back in about 40 minutes connecting me to an actual IRS rep! The agent confirmed exactly what documents I needed for my situation (was filing as qualifying widower and they needed death certificate plus proof of dependent). The weirdest part was the agent said they could see I'd called multiple times before but had been disconnected due to "high call volume" - super frustrating but at least I finally got answers.

Quick tip I learned when responding to LTR 324C for filing status: send everything via certified mail with return receipt! I responded to mine with all the right docs but the IRS claimed they never received it, and I had no proof of sending it. Ended up paying penalties I shouldn't have had to pay. Learn from my mistake!

I feel like I'm taking crazy pills reading these responses. You guys realize the IRS is just fishing for information, right? These LTR 324C letters are often automated and sent out as part of their collection efforts. I got one for "filing status" but my CPA said unless they're specifying an actual problem, it could just be a fishing expedition.

I dealt with a similar LTR 324C situation last year and wanted to share what worked for me. The key thing is to respond promptly and provide clear documentation that supports your filing status claim. Since you filed as Head of Household with your daughter, you'll want to gather documents that prove two things: 1) your daughter lived with you for more than half the year, and 2) you paid more than half the costs of maintaining your home. Good documents include: school enrollment records showing your address, medical records with your address, any childcare receipts, grocery receipts, utility bills in your name, rent/mortgage statements, and bank statements showing you paid household expenses. Also keep in mind that if your daughter's other parent claimed her as a dependent on their return, that could trigger this letter even if you're entitled to Head of Household status. The IRS computer systems flag these potential conflicts automatically. Don't stress too much - this really is just a verification process, not an accusation of wrongdoing. Just respond by their deadline with organized documentation and a brief cover letter explaining your situation.