Letter 1737 (LT 27): What It Is and How to Respond
Summary:
Letter 1737 (LT 27) is an official IRS communication typically sent to taxpayers when discrepancies, balance dues, or other issues arise with their tax returns. The letter outlines the specific problem, necessary actions, and any deadlines for response. Timely addressing the issue can help prevent penalties, interest charges, or further complications with your tax filings.
Receiving a letter from the IRS is rarely a welcome experience, especially if you’re unsure what the letter is about or what to do next. Letter 1737 (LT 27) is one of the many notices the IRS sends to taxpayers when there are questions or problems with their tax return or account. This notice could be related to a balance due, a refund adjustment, or an inquiry that requires additional information from you. In this article, we’ll walk you through what this letter means, why you might receive it, and how to respond appropriately to resolve the issue and avoid any penalties.
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What is letter 1737 (LT 27)?
Letter 1737 (LT 27) is a formal notice from the IRS, usually sent when there is an issue regarding your tax return or tax account. This letter serves as an official notification that something in your tax filings or account needs attention, whether it’s an unpaid balance, a request for additional documentation, or corrections made by the IRS. Understanding the content of this letter is crucial, as it informs you of what actions are required to resolve the matter.
Pro Tip
Set up IRS account alerts online to get real-time notifications on any changes to your tax return or account. This helps you stay updated on adjustments and due dates.
Common reasons for receiving letter 1737 (LT 27)
You have a balance due
The IRS may send Letter 1737 (LT 27) if you have an outstanding balance on your tax account. This could happen if you didn’t pay enough taxes during the year, if your withholding was incorrect, or if you were subject to additional taxes after a review or audit. It’s essential to pay attention to any amounts listed in the letter to avoid further interest or penalty accrual.
Your refund has changed
Another reason for receiving this letter could be a modification to your refund. The IRS sometimes adjusts refund amounts after reviewing the return, especially if they identify errors, such as misreported income or incorrect tax credits.
The IRS has questions about your return
In cases where the IRS has questions or doubts about specific details in your return, they may use this letter to request clarification. This could be related to certain deductions, exemptions, or income reporting that seems inconsistent with their records.
Verification of your identity
Identity verification is another common reason for Letter 1737 (LT 27). This is a standard measure to prevent tax-related identity theft. The IRS might need confirmation that you are the one filing the return and not someone who has stolen your personal information.
Changes or corrections to your tax return
The IRS might also use Letter 1737 (LT 27) to inform you that they’ve made corrections to your return. This could happen if they identify a mathematical error or if the information you reported conflicts with what they have on file, such as W-2 or 1099 forms.
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What should you do when you receive letter 1737 (LT 27)?
When you receive Letter 1737 (LT 27), it’s important to carefully read the letter and take prompt action. Follow these steps to ensure you address the issue effectively:
- Review the letter: Take the time to read the letter carefully and understand the issue. Check the amount owed, any changes to your return, or any requests for additional information.
- Compare it with your tax return: Look at the information in the letter and compare it with the details in your personal tax return. See if there are any discrepancies, and try to identify what might have caused the problem.
- Respond by the due date: The letter will likely include a deadline for response or payment. Be sure to take action by that date to avoid additional penalties or interest.
- Contact the IRS if necessary: If the letter is unclear or you need further clarification, you can contact the IRS at the phone number provided in the notice. Be prepared to provide your tax identification number and other relevant details.
Pro Tip
Keep a detailed record of all IRS letters and notices, including Letter 1737 (LT 27). This can be crucial if you need to reference prior communications when resolving tax issues.
How to respond to letter 1737 (LT 27)
Steps to take when responding to letter 1737 (LT 27)
If the letter requires a response, follow the steps outlined in the notice. In most cases, you’ll need to provide additional documents, verify your identity, or pay any outstanding balances. Here’s a general approach to responding:
- Verify the issue: Identify the exact problem mentioned in the letter. Whether it’s a balance due or a refund adjustment, ensure you understand what the IRS is asking for.
- Gather the necessary documents: If the IRS has requested additional documentation, such as proof of income or receipts for deductions, gather everything required.
- Submit a response: Follow the instructions in the letter to submit your response. This could involve mailing documents, making a payment, or responding online.
What to do if you disagree with the IRS
If you disagree with the content of the letter, you can file a dispute. Be sure to include any relevant documents supporting your case and respond by the deadline provided. Failing to meet the deadline could result in the IRS applying additional interest or penalties.
Potential consequences if you don’t respond
Ignoring Letter 1737 (LT 27) can have serious consequences. These may include:
- Accumulation of interest and penalties on any unpaid balance.
- Further enforcement actions by the IRS, such as wage garnishments or tax liens.
- Delays in receiving any refunds or the inability to file future returns without resolving the issue.
To avoid these outcomes, it’s important to take prompt action as outlined in the letter.
Pro Tip
If you owe a balance but can’t pay in full, contact the IRS to explore installment agreements. Paying in installments helps you avoid penalties while managing your finances.
How to avoid receiving future IRS notices
While it’s not always possible to avoid every notice from the IRS, there are some steps you can take to reduce the likelihood of receiving letters like Letter 1737 (LT 27):
- Ensure that all information on your tax return is accurate and complete.
- Pay any taxes owed in full and on time.
- Respond promptly to any requests for additional information or documentation.
- Keep your address up to date with both the IRS and the Social Security Administration to ensure you receive important communications.
Further support options
If you’re unsure how to proceed after receiving Letter 1737 (LT 27), consider the following resources:
- Consult a certified tax professional, such as a CPA or tax attorney, to help you navigate the situation.
- Visit the IRS website or contact their support hotline for additional information and assistance.
- Reach out to your local IRS office or the Taxpayer Advocate Service for help, especially if you’re experiencing financial difficulties.
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Frequently asked questions
What should I do if I can’t pay the amount owed by the due date?
If you are unable to pay the full amount owed by the due date mentioned in Letter 1737 (LT 27), it’s important to still pay as much as you can. This will help reduce any interest and penalties that may accrue. You can contact the IRS to discuss payment plan options such as an installment agreement, which allows you to pay the balance over time.
Can I dispute the changes made by the IRS?
Yes, if you disagree with the changes made by the IRS in Letter 1737 (LT 27), you can dispute them. Follow the instructions in the letter to submit your dispute, including any supporting documentation. Make sure to respond by the deadline to preserve your appeal rights.
How long do I have to respond to Letter 1737 (LT 27)?
The deadline to respond is usually provided within the letter. It’s important to carefully check the date and act promptly. Delays in responding may lead to additional penalties, interest, or enforcement actions by the IRS.
What if I suspect the letter is a scam?
If you suspect that Letter 1737 (LT 27) is fraudulent or you cannot verify its authenticity through the IRS website or other trusted sources, contact the IRS directly at 800-829-1040. Do not provide personal information unless you are sure the communication is legitimate.
Can I handle the issue online?
In some cases, the IRS allows you to manage issues like paying balances or responding to requests for additional information through your online IRS account. However, certain situations, like submitting disputes or verifying identity, may require mailing documents. Check the letter for specific instructions on how you can respond.
Need help understanding other IRS letters and notices? Visit our comprehensive guide to IRS Letters and Notices or search for the document you received in the table below.
| CP01 | The IRS verified your claim of identity theft and will monitor your account. |
| CP01H | The IRS received a tax return with a social security number that belongs to a dead person. |
| CP02H | Money is due on an amended return based on a grant received due to Hurricane Katrina, Rita, or Wilma. |
| CP03C | You received the First-Time Homebuyer Credit for a house you purchased. |
| CP04 | You may be eligible for tax deferment because either you or a spouse served in a combat zone, a qualified contingency operation, or a hazardous duty station during the tax year specified on your notice. |
| CP08 | You may be entitled to additional money due to the Additional Child Tax Credit. |
| CP10 | Your tax return changed due to a miscalculation, and the refund you wanted to apply to an estimated tax payment has changed. |
| CP10A | Your tax return changed due to a miscalculation of the Earned Income Credit, and the refund you wanted to apply to an estimated tax payment has changed. |
| CP11 | You owe money because the IRS amended your return due to a miscalculation. |
| CP11A | Your tax return changed due to a miscalculation of the Earned Income Credit, and the refund you wanted to apply to an estimated tax payment also changed. |
| CP11M | Your tax return changed due to a miscalculation of the Making Work Pay and Government Retiree Credit, and the refund you wanted to apply to an estimated tax payment has changed. |
| CP12 | You are due a bigger refund because the IRS corrected one or more mistakes on your tax return. |
| CP12A | The IRS made changes to correct the Earned Income Credit (EIC) claimed on your tax return. |
| CP12E or CP12F | The IRS corrected a miscalculation on your return. |
| CP12M | The IRS made changes to the computation of the Making Work Pay and/or Government Retiree Credits on your return. |
| CP12R | The IRS made changes to the computation of the Rebate Recovery Credit on your return. |
| CP13 | The IRS made changes to your return due to a miscalculation. There is no refund or amount due. Your balance is zero. |
| CP13A | The IRS made changes to your return due to a miscalculation of the Earned Income Credit. There is no refund or amount due. Your balance is zero. |
| CP13M | The IRS made changes to your return due to a miscalculation of the Making Work Pay credit or the Government Retiree Credit. There is no refund or amount due. Your balance is zero. |
| CP13R | The IRS made changes to your return due to a miscalculation of the Recovery Rebate Credit. There is no refund or amount due. Your balance is zero. |
| CP14 | You owe money on unpaid taxes. |
| CP16 | The IRS made changes to your return due to a miscalculation. The refund you were due was applied to other tax debts. |
| CP21A | You owe money due to the changes you requested that the IRS make on your tax returns. |
| CP21B | You are due a refund due to the changes you requested that the IRS make on your tax returns. The money should arrive within 2 to 3 weeks. |
| CP21C | The IRS made the requested changes to your tax return. You will not receive a refund, and there is no tax due. Your balance is zero. |
| CP21E | As a result of your recent audit, the IRS made changes to your tax return, and you owe money as a result of those changes. |
| CP21I | The IRS made changes to your tax return relating to the Individual Retirement Arrangement (IRA) taxes. You owe money due to the changes. |
| CP22A | The IRS made the changes you requested, and you owe money as a result. |
| CP22E | As a result of your recent audit, the IRS changed your tax return, and you now owe money. |
| CP22I | The IRS made changes to your tax return relating to the Individual Retirement Arrangement (IRA) taxes. You owe money due to the changes. |
| CP23 | The IRS changed your return because there was a difference between the amount of estimated tax payments listed on your tax return and the amount actually posted to your account. You owe taxes due to these changes. |
| CP24 | The IRS changed your return because there was a difference between the amount of estimated tax payments listed on your tax return and the amount actually posted to your account. This resulted in an overpayment of estimated taxes. |
| CP24E | The IRS changed your return because there was a difference between the amount of estimated tax payments listed on your tax return and the amount actually posted to your account. This resulted in an overpayment of estimated taxes. |
| CP25 | The IRS changed your return because there was a difference between the amount of estimated tax payments listed on your tax return and the amount actually posted to your account. You are not due a refund, nor do you owe any money. Your balance is zero. |
| CP31 | You need to update your address because your refund check was returned to the IRS. |
| CP45 | The IRS was unable to apply your overpayment to your estimated tax as you requested. |
| CP49 | The IRS used all or part of your refund to pay a tax debt. |
| CP53 | Your refund check will be sent by mail because the IRS can’t provide your refund through direct deposit. |
| CP57 | The bank declined your payment, so the IRS was unable to draft funds from your bank account. |
| CP71 | A reminder of the amount you owe in tax, penalty, and interest. |
| CP71A | A reminder of the amount you owe in tax, penalty, and interest. |
| CP71C | A reminder of the amount you owe in tax, penalty, and interest. |
| CP71D | A reminder of the amount you owe in tax, penalty, and interest. |
| CP88 | The IRS is holding your refund because you haven't filed one or more tax returns, and it believes you will owe tax. |
| CP90 | The IRS is notifying you of its intent to levy certain assets for unpaid taxes. You have the right to dispute the levy in a Collection Due Process hearing. |
| CP91 | The IRS will levy up to 15% of your social security benefits for unpaid taxes. |
| CP120 | The IRS needs documentation of your tax-exempt status. |
| CP120A | Your organization’s tax-exempt status has been revoked because it failed to file a Form 990 series return for three consecutive years. |
| CP130 | You may no longer need to pay the Alternative Minimum Tax (AMT) because your tax return filing requirements changed. |
| CP152 | The IRS received your return. |
| CP153 | The IRS will send your refund by mail because your direct deposit did not go through. |
| CP161 | You have an unpaid balance due to the IRS. |
| CP166 | Your monthly payment to the IRS did not go through due to insufficient funds in your bank account. |
| CP178 | You may no longer owe excise tax because your tax return filing requirements changed. |
| CP231 | You need to update your address because your refund was returned to the IRS. |
| CP259 | You did not file the business tax return identified in the notice. |
| CP259A | You should have filed these forms but did not – Form 990/990-EZ, Return of Organization Exempt From Income Tax, or Form 990-N (e-Postcard). |
| CP259B | The IRS requires you to file these forms but did not – Form 990-PF, Return of Private Foundation or Section 4947(a)(1) Nonexempt Charitable Trust Treated as a Private Foundation. |
| CP259C | The IRS believes that you are a private foundation, but did not file the required Form 990-PF, Return of Private Foundation or Section 4947(a)(1) Nonexempt Charitable Trust Treated as a Private Foundation. |
| CP259D | You must file this form, but you did not – Form 990-T, Exempt Organization Business Income Tax Return. |
| CP259E | You should have filed this form, but you did not – Form 990-N (e-Postcard) or Form 990/990-EZ, Return of Organization Exempt From Income Tax. |
| CP259F | The IRS requires you to file this form but did not – Form 5227, Split-Interest Trust Information Return. |
| CP259G | The IRS requires you to file this form, but you didn’t – Form 1120-POL, U.S. Income Tax Return for Certain Political Organizations. |
| CP259H | As a tax-exempt political organization, you must file this form, but you did not – Form 990/990-EZ, Return of Organization Exempt From Income Tax. |
| CP276A | You submitted your tax liability schedule incorrectly. The IRS typically charges a Federal Tax Deposit (FTD) penalty for this but did not this time. |
| CP276B | The IRS did not receive the correct amount of tax deposits. It normally charges a Federal Tax Deposit (FTD) penalty but did not this time. |
| CP297 | The IRS is notifying you of its intent to levy certain assets for unpaid taxes. You have the right to dispute the levy at a Collection Due Process hearing. |
| CP297A | The IRS has levied your assets for unpaid taxes. You have the right to dispute the levy at a Collection Due Process hearing. |
| CP298 | The IRS notifying you of its intent to levy up to 15% of your social security benefits for unpaid taxes. |
| CP501 | You have a balance due on one of your tax accounts. |
| CP503 | You have an unpaid balance on one of your accounts, and the IRS has not heard from you. |
| CP504 | You have an unpaid amount due on your account. If you do not pay immediately, the IRS will levy your state income tax refund to apply it to the amount you owe. |
| CP504B | You have an unpaid amount due on your account. If you do not pay immediately, the IRS will levy certain property or rights to property to apply it to the amount you owe. |
| CP521 | A reminder that you have an installment agreement payment due. |
| CP523 | You have defaulted on your payment agreement. Therefore the IRS is terminating the agreement and will levy your assets. |
| CP601 | Usted tiene un saldo pendiente de pago (dinero que le debe al IRS) en una de sus cuentas contributivas. |
| CP603 | No hemos recibido respuesta de parte de usted y todavía tiene un saldo sin pagar en una de sus cuentas contributivas. |
| CP604 | Usted tiene un saldo sin pagar en su cuenta. De no pagar esta cantidad inmediatemente, el IRS embargará cualquier reembolso de impuestos estatales al que tenga derecho y aplicarlo al pago de su deuda. |
| CP604B | Usted tiene un saldo sin pagar en su cuenta. De no pagar esta cantidad inmediatemente, el IRS embargará ciertas propiedades o derechos de propiedad y lo aplicará al pago de su deuda. |
| CP621 | Este aviso es para notificarle que usted tiene un plan de pagos a plazos vencido. Por favor, envíe el pago inmediatamente. |
| CP623 | Este aviso es para informarle nuestra intención de cancelar su plan de pagos a plazos y confiscar (embargar) sus bienes. Usted incumplió en su acuerdo. |
| CP711 | Nosotros realizamos cambios a su planilla debido a que entendemos que hubo un cálculo erróneo. Como resultado de estos cambios, usted adeuda dinero por sus contribuciones. |
| CP721 | Hicimos el(los) cambio(s) que usted solicitó a su declaración de impuestos para el año tributario que aparece en su aviso. Como resultado de éste(estos) cambio(s) usted debe dinero en sus impuestos. |
| CP722 | Hicimos el(los) cambio(s) que usted solicitó a su declaración de impuestos para el año tributario que aparece en su aviso. Como resultado de éste(estos) cambio(s) usted debe dinero en sus impuestos. |
| CP771 | Usted recibió este aviso para recordarle sobre la cantidad que adeuda en contribuciones, multas e intereses. |
| CP772 | Usted recibió este aviso para recordarle sobre la cantidad que adeuda en contribuciones, multas e intereses. |
| CP773 | Usted recibió este aviso para recordarle sobre la cantidad que adeuda en contribuciones, multas e intereses. |
| CP774 | Usted recibió este aviso para recordarle sobre la cantidad que adeuda en contribuciones, multas e intereses. |
| CP959 | Usted no radicó su planilla de contribución de negocios identificada en este aviso. |
| CP2000 | The income or payment information on file doesn’t match your tax return. The discrepancy may result in an increase or decrease in your tax due. |
| CP3219A | The IRS has received information that is different from what you reported on your tax return. This may result in an increase or decrease in your tax. |
| CP3219N | The IRS didn’t receive your tax return, so it calculated your return based on the information received from employers, financial institutions, and others. If you want to challenge the proposed tax, you have 90 days from the date of this notice. If you are outside the country, you have 150 days. |
| Letter 0012C | The IRS needs additional information to process your tax return. |
| Letter 0484C | The IRS wants a completed |
| Letter 0525 | Updates you on proposed changes after an IRS examination. Any changes are explained and details the refund due or taxes owed. |
| Letter 531 | IRS Notice of Deficiency. The information the IRS received about you was different from what you reported on your return. |
| Letter 0668D(LP 68) | The IRS released their levy. |
| Letter 0549C | Your tax bill was paid. |
| Letter 0681C | The IRS accepted your payment proposal. However, this is not a formal Installment Agreement. |
| Letter 0757C | You did not adhere to the terms of your Installment Agreement. |
| Letter LT 11 | The IRS plans to seize your property or rights to property. |
| Letter 1058 | The IRS has not received your payment. It plans to seize your property or rights to property. |
| Letter 1615 (LT 18) | You must respond to the IRS within 10 days of this notice regarding past due tax returns. |
| Letter 1737 (LT 27) | Complete and sign Form 433F, Collection Information Statement. |
| Letter 1961C | Your application for a Direct Debit Installment Agreement was declined. It explains why and what you need to do to qualify. |
| Letter 1962C | Your application for a |
| Letter 2050 (LT 16) | The IRS is trying to collect unpaid taxes from you from returns that have been filed or from returns that have not been filed. |
| Letter 2257C | The IRS is providing the payoff amount that you requested. |
| Letter 226-J | An IRS letter to large employers notifying them that they may be liable for an Employer Shared Responsibility Payment (ESRP). |
| Letter 2271C | A request for an Installment Agreement has been approved. It explains the fees and how to qualify for a Low Income Fee Reduction. The letter may also request missing information. |
| Letter 2272C | An IRS letter explaining why your request to pay the balance due in installments was declined. |
| Letter 2273C | A confirmation letter of your request to pay the balance due in installments. It contained the amount to pay, fees charged, and where to send payment. Instructions on how to apply for the Low Income Fee Reduction included. |
| Letter 2318C | A response to a request to pay taxes due to payroll deductions. It also explains the fees that are charged. |
| Letter 2357C | The IRS is admitting that it did not send you the balance due notices that it should have. |
| Letter 2603C | The IRS accepted your installment agreement. The IRS will file a Notice of Federal Tax Lien on your personal property. |
| Letter 2604C | The IRS has accepted your request for installment payments. This IRS letter provides the monthly payment, the address where to send it, and the fees charged. The letter also provides instructions on how to apply for the Low Income Fee Reduction. |
| Letter 2761C | The IRS is requesting your combat zone service dates to ensure that it provides you with the special provisions and protection of the combat zone deferment. Copies of military orders or other documentation to support your time served may be requested. Civilians working in support of the Armed Forces may be required to provide a Letter of Authorization or a letter from their employer. |
| Letter 2789C | An annual reminder notice, as required by law, of the balance due to the IRS. It explains that penalties and interest continue to accrue until the balance is fully paid. |
| Letter 2840C | Confirms your Installment Agreement request and includes the payment amount and due date. This IRS letter explains the fees charged for paying monthly and explains how to apply for the Low Income Fee Reduction (if you qualify). |
| Letter 3030C | Provides an explanation of the tax, penalty, and interest still due on your account. |
| Letter 3127C | A confirmation of your request to make a change to your Installment Agreement. This IRS letter explains the fees for the change. Changes can be to the payment amount or due date, or it can include additional liabilities. |
| Letter 3174 | A reminder of taxes due after the IRS has sent a Notice of Intent to Levy. |
| Letter 3217C | The IRS has accepted your request to pay the balance in installments. This IRS letter provides your payment amount, the due date, and fees charged. The letter also provides instructions on applying for the Low Income Fee Reduction (if you qualify). |
| Letter 3228 (LT 39) | A request to pay the balance due within 10 days using the envelope provided. |
| Letter 3500 | The IRS has received your documents, and it needs additional time to review them. |
| Letter 3572 | Your Federal Income Tax Return has been selected for examination. The IRS auditor requests that you call to schedule an audit appointment. |
| Letter 4883C | The IRS received your federal income tax return but needs more information to verify your identity in order to process your tax return accurately. |
| Letter 4903 (LT 26) | You must file your tax returns immediately. The IRS has previously contacted you, but it did not receive a response. |
| Letter LP 47 | The IRS is trying to locate the person identified in the letter and is requesting that you provide their new address. |
| Letter LP 59 | The IRS has not received a response to the notice of levy it previously sent. |
| Audit Letter 2205 | The IRS manages audits either by mail or through an in-person interview to review your records. The interview may be at an IRS office (office audit) or the taxpayer’s home, place of business, or accountant’s office (field audit). |
| Letter 915 | You recently underwent an audit, and the IRS informs you that you now owe taxes. |
Key takeaways
- Letter 1737 (LT 27) is sent when the IRS identifies a problem with your tax return or account.
- Common issues include outstanding balances, identity verification, or tax return discrepancies.
- Respond promptly to avoid penalties and interest accumulation on any amounts owed.
- Review the letter carefully and follow the instructions to resolve the issue quickly.
- Consider seeking help from a tax professional if you’re unsure how to proceed.
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