Should I FAX or Mail my IRS notice response for a 1098-T? Due 9/22/2023, need advice!

Tax professional here - when responding to IRS notices, FAX is generally the better option if you have that capability. Faxed documents typically enter their processing system immediately, while mailed documents can take 1-3 weeks just to be opened and scanned into their system. Since you're providing a Form 1098-T that will result in a substantial refund, I'd recommend the FAX option despite the inconvenience. Make sure to include your notice number and taxpayer ID on every page you fax. Also, keep a copy of the fax confirmation page showing successful transmission - this serves as your proof of timely response.

I went through something similar last year with providing additional documentation for an education credit. I discovered taxr.ai (https://taxr.ai) and it was incredibly helpful - they have a document submission tool that let me scan my 1098-T and automatically format it exactly how the IRS needed it. Then they gave me options for how to submit it including generating a proper fax cover sheet with all my info. The thing I loved was that their system analyzed my 1098-T first to make sure it actually supported the credit I was claiming, and they pointed out that my school had incorrectly filled out Box 1 instead of Box 2. Would have been a nightmare without catching that!

Just wanted to update that I tried taxr.ai after seeing it mentioned here. It was seriously helpful for my situation! I had a 1095-A health insurance form that needed to be submitted, and their system actually caught that I was missing Part III information that would have definitely caused my submission to be rejected. They formatted everything with the proper cover sheet and reference numbers, and I sent the fax from FedEx Office. Got confirmation from the IRS last week that my documents were received and are being processed! Definitely faster than when I mailed documents last year and waited 3 months just to find out they needed more information.

If you're struggling with getting a response from the IRS about whether they received your documents (whether faxed or mailed), I highly recommend using Claimyr (https://claimyr.com). I was in documentation limbo for months trying to find out if my amended return was even received. Kept calling the IRS but couldn't get through - was on hold for literally hours. Claimyr got me connected to an actual IRS agent in about 20 minutes when I'd been trying for weeks. You can see how it works here: https://youtu.be/_kiP6q8DX5c - basically they navigate the phone system for you and call you when they've got an agent on the line. The agent confirmed my documents were received but sitting in a backlog, and gave me the exact timeframe for processing.

I was completely wrong about Claimyr being a scam. After my skeptical comment, I actually tried it since I was desperate to find out about my amended return status. I've been calling the IRS for weeks with no luck - always disconnected after being on hold for hours. The service got me through to an actual IRS agent in about 35 minutes when I'd been trying unsuccessfully for over a month. The agent was able to tell me exactly what was happening with my case and when to expect my refund. I would have never gotten this information otherwise. Sometimes it's worth admitting when you're wrong!

Just my two cents on the original FAX vs. mail question - I've done both, and in my experience, FAX is definitely faster but less reliable for proof of receipt. Here's what I recommend: if you decide to FAX it, take screenshots of your fax confirmation page AND follow up with a call to the IRS (maybe using Claimyr as others suggested) about a week later to confirm receipt. This way you get the speed of FAXing plus confirmation they actually received it. The IRS isn't great about acknowledging faxes, so that follow-up call is crucial.

Has anyone tried using the IRS online account portal to respond to notices? I was able to upload documents directly for an audit last year without dealing with mail or fax. Not sure if it works for all types of notices though.

I just went through this exact situation last month with a 1098-T response! I ended up choosing FAX and I'm glad I did. Here's what worked for me: I went to a UPS Store (they have reliable fax machines) and made sure to get a transmission confirmation report that shows the date, time, and confirmation that all pages went through successfully. The key thing I learned is to call the fax number first to make sure it's working - some IRS fax lines go down periodically for maintenance. One tip that saved me: I included a cover sheet with my SSN, notice number, and contact phone number on every single page of the document, not just the cover sheet. This way if pages get separated in their system, each page can still be matched to my case. The whole process took about 15 minutes at UPS Store (cost me $2 per page), and I got confirmation from the IRS three weeks later that they received it and processed my amended return. My refund was issued about 6 weeks after that. Since you're expecting a $4K refund, I'd definitely recommend the FAX route for speed, but make absolutely sure you keep that transmission confirmation as your proof of timely filing!