What is a 12C Letter from the IRS? Agent said one was sent last Thursday

A 12C letter is an IRS information request that requires your attention. Based on my experience with these notices: • It's requesting specific information about something on your tax return • You typically have 30 days to respond from the date on the letter • It's often related to income verification or documentation for credits/deductions • It's not necessarily an audit, just a verification request • The IRS may have questions about your independent contractor income I'd recommend checking your mail carefully over the next few days as USPS delivery times vary. When you receive it, read it thoroughly before responding.

Letter 12C is an IRS request for additional information to process your return. According to IRM 21.5.3.4.6.1, the 12C is typically sent when the IRS needs verification for income, credits, or deductions claimed on your return. As an independent contractor, they may be verifying your reported income against information returns (1099s) they've received. The letter will specify exactly what information they need and provide instructions for responding. Per IRC §6501, you should respond within the timeframe indicated to avoid processing delays or potential adjustments to your return.

I received a 12C letter last tax season as a freelance graphic designer. Unlike a CP2000 notice (which proposes changes to your return), the 12C just asks for supporting documentation. In my case, they questioned some business expenses that seemed high compared to similar businesses in my industry. I sent in my documentation with a clear explanation letter, and everything was resolved within about 6 weeks. Much easier than dealing with an actual audit, which my cousin went through last year and took nearly 9 months to resolve. Just make sure you respond with exactly what they're asking for - no more, no less.

Last year when I received a 12C letter, I spent 4 days trying to reach someone at the IRS to get clarification before my documentation was due. I finally used Claimyr (https://youtu.be/_kiP6q8DX5c) to connect with an agent in about 30 minutes. The agent was able to see exactly what triggered the letter and gave me specific guidance on what documentation would satisfy their request. Based on my previous experiences waiting 2+ hours on hold or getting disconnected, this was absolutely worth it. The IRS phone system is like trying to navigate a maze blindfolded while the clock is ticking on your response deadline.

The 12C letter is essentially the IRS equivalent of a fact-checking editor. They're not saying your return is wrong - they're just verifying certain elements before proceeding. Think of it like a bank asking for ID before cashing a large check - standard procedure for risk management. The letter will specifically outline what they need verification for, which for independent contractors often relates to business expenses, quarterly payment verification, or reconciling 1099 information. When you receive it, create a response package with a cover letter referencing the notice number, attach only the requested documentation (organized chronologically), and keep a complete copy for your records. Send via certified mail with return receipt to establish a paper trail of your timely response.

I just went through this! Got a 12C in January about my home office deduction. I was freaking out, but it turned out to be super straightforward. I sent them photos of my workspace, utility bills, and a floor plan showing the percentage used exclusively for business. They processed everything and approved my refund within 3 weeks of receiving my documentation. The letter is actually pretty specific about what they need - I was surprised how clear the instructions were compared to other IRS communications. Are 12C letters always this straightforward? I was expecting something much more intimidating!

Just to clarify something important: Letter 12C is different from CP12 notices. A CP12 is about math errors and automatic adjustments, while 12C requests specific documentation. Make sure you're looking for the right letter when it arrives. The letter will have the exact notice number in the upper right corner. Also, if you haven't received it within 7-10 business days of the IRS telling you it was sent, you can request a copy by calling the number listed on the IRS notice line. Don't delay your response waiting for the original if it got lost in the mail.

As someone who's dealt with multiple IRS notices over the years, I want to add that the 12C letter will have very specific instructions about what documentation to send and where to send it. Don't send everything you have - only what they specifically request. I made that mistake once and it actually delayed my case because they had to sort through unnecessary paperwork. Also, if you're missing any of the requested documents (like a lost receipt), you can often substitute with bank statements showing the transaction, canceled checks, or even a sworn statement explaining the missing documentation. The key is to respond within the timeframe given - usually 30 days from the letter date - and to be thorough but focused in your response.

I received a 12C letter about 6 months ago regarding some business equipment deductions I claimed as a freelance photographer. The process was actually much smoother than I anticipated. The letter clearly outlined that they needed receipts for camera equipment purchases over $2,500 and documentation showing the business use percentage. I gathered my purchase receipts, created a simple log showing when I used the equipment for paid shoots vs personal use, and included a brief cover letter explaining my business model. The whole thing was resolved in about 5 weeks with no changes to my return. One tip: if you're still waiting for the letter to arrive, start organizing your 2023 tax documents now - receipts, 1099s, bank statements, etc. Having everything organized made my response so much easier when the time came.