Letter 937: What It Means and What to Do Next
Summary:
Letter 937 is a notice from the IRS that explains a payment or credit adjustment on your tax account. When you receive Letter 937, it’s important to understand what it signifies and take action if necessary. It generally accompanies other notices to provide an explanation or additional context regarding changes made to your tax account, such as adjustments, payment discrepancies, or changes in credits. The letter also informs you about the next steps and outlines any actions you may need to take in response to the adjustment.
Receiving a letter from the IRS can be concerning, especially when it involves changes to your tax account. Letter 937 serves as a formal notice that explains the reasons behind a payment or credit adjustment. It typically accompanies other IRS correspondence, providing more details about changes to your account balance, payments received, or credits applied. Understanding the purpose of this letter, how to interpret it, and what actions you may need to take can help you resolve any issues quickly and avoid further complications with the IRS.
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What is letter 937?
Letter 937 is an explanatory notice sent by the IRS to provide additional context or clarification regarding changes to your tax account. It often accompanies other notices or forms, such as a Notice of Deficiency, Notice of Overpayment, or adjustment-related communication. The letter outlines the nature of the changes, such as payment discrepancies, credit adjustments, or balance modifications, giving taxpayers a clear understanding of the IRS’s actions.
Purpose of letter 937
The primary aim of Letter 937 is to inform taxpayers about adjustments made to their accounts. These adjustments could be due to:
– Corrections in tax calculations
– Changes in reported income or deductions
– Payments applied differently than expected
– Adjustments to tax credits (such as earned income credit or child tax credit)
– Corrections in tax calculations
– Changes in reported income or deductions
– Payments applied differently than expected
– Adjustments to tax credits (such as earned income credit or child tax credit)
By providing this explanation, the IRS aims to ensure taxpayers are aware of what actions have been taken and the reasons behind them.
When to expect letter 937
You might receive Letter 937 when the IRS needs to explain changes resulting from:
– Audits or reviews of your tax return
– Additional documentation submitted after filing
– Corrections made by the IRS that alter your account balance
– Processing delays that result in unexpected payment or credit changes
– Audits or reviews of your tax return
– Additional documentation submitted after filing
– Corrections made by the IRS that alter your account balance
– Processing delays that result in unexpected payment or credit changes
Understanding when and why this letter arrives can help you respond appropriately and address any underlying issues.
Pro tip
Always keep copies of all correspondence with the IRS, including notices, letters, and payment confirmations. Organized records can help you resolve any discrepancies faster.
How does letter 937 affect you?
Receiving Letter 937 indicates that an adjustment has been made to your tax account, which could impact your balance, payments, or refunds. Here are some common scenarios where Letter 937 might affect your tax situation:
Adjustment to account balance
If the IRS made a correction to your tax account, it could change the amount you owe or the size of your refund. For example, if you claimed a credit that was later disallowed, Letter 937 would accompany a notice explaining the change and adjusting your balance accordingly.
Payment discrepancies
In cases where payments were applied differently than expected, Letter 937 provides an explanation. This could involve situations where:
– Payments were credited to the wrong tax year
– Partial payments were applied to multiple balances
– Payment corrections were made due to prior errors
– Payments were credited to the wrong tax year
– Partial payments were applied to multiple balances
– Payment corrections were made due to prior errors
Understanding these discrepancies is essential for resolving any confusion and ensuring your account reflects accurate payment records.
Tax credit changes
Adjustments to tax credits can occur due to changes in eligibility or errors in calculation. For example, if you claimed a higher child tax credit than you were entitled to, the IRS would adjust your account, and Letter 937 would explain the correction. This allows you to take any necessary steps, such as amending a return or making an additional payment.
Pro tip
If you notice any discrepancies in your tax records, request an IRS account transcript. This document shows all transactions and adjustments, making it easier to identify and resolve issues.
Steps to take when you receive letter 937
Upon receiving Letter 937, it’s important to review the information carefully and take the following steps:
1. Read the letter thoroughly
Ensure that you understand the details of the adjustment or payment change mentioned in the letter. Take note of any associated tax years, payment dates, and adjustment amounts.
2. Cross-check your records
Verify the information provided by the IRS with your own tax records. Compare the details in Letter 937 with your filed tax return, payment records, and any correspondence you have had with the IRS. If you notice discrepancies, you may need to provide additional documentation.
3. Contact the IRS if necessary
If you disagree with the adjustment or if the explanation is unclear, contact the IRS for clarification. You can reach out to the phone number listed on the letter or visit your local IRS office for assistance.
4. Take corrective action if required
If the adjustment results in a balance due or a need to amend your tax return, take the necessary steps promptly. This may involve submitting additional documentation, making a payment, or filing an amended return.
Responding to discrepancies or errors
If you believe there is an error with the adjustment detailed in Letter 937, it’s important to act quickly to resolve the issue.
Disputing an adjustment
To dispute an adjustment, gather supporting documents that prove the discrepancy, such as payment receipts, bank statements, or corrected tax forms. Contact the IRS and provide this evidence, explaining why you believe the adjustment is incorrect. The IRS may require you to submit additional documentation to substantiate your claim.
Requesting an account transcript
You can request an IRS account transcript to review a detailed history of your account activity. This transcript will show all payments, credits, and adjustments, allowing you to pinpoint any discrepancies.
Pro tip
Consider consulting a tax professional if you receive multiple notices or if the adjustments are complex. A professional can help you navigate the process and minimize potential penalties.
Preventing future issues with IRS correspondence
Receiving Letter 937 or similar IRS notices can be stressful, but taking proactive steps can help prevent future problems. Here are some tips to minimize the likelihood of receiving unexpected IRS notices:
Maintain accurate records
Keeping detailed and organized records of all tax documents, payments, and correspondence can help you quickly address any discrepancies. This includes saving copies of filed tax returns, payment confirmations, and IRS communications.
Verify your information before filing
Double-check all information on your tax return before submitting it, including income, deductions, and credits. Mistakes can lead to adjustments and additional correspondence from the IRS.
Respond promptly to IRS notices
Always respond to IRS notices as soon as possible to resolve issues quickly. This can prevent further complications, such as additional penalties or interest charges.
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Frequently asked questions
What should I do if I don’t understand the explanation in letter 937?
If the details provided in Letter 937 are unclear, you should reach out to the IRS for clarification. Contact the phone number listed on the letter or visit your local IRS office to speak with a representative who can help explain the adjustment. It’s important to have all relevant documentation on hand, such as tax returns, payment records, and the original notice, to help the IRS provide accurate assistance.
Can I resolve issues related to letter 937 online?
While some IRS-related matters can be handled through their online tools, resolving issues connected to Letter 937 may require direct communication with the IRS. You can check your account balance or payment history on the IRS website, but if you need to dispute an adjustment or provide additional documentation, you will likely need to do so by mail or in person.
What if I received letter 937 but never filed a tax return?
If you receive Letter 937 and you have not filed a tax return, this could indicate potential identity theft or a filing error. Contact the IRS immediately to report the issue. The IRS may recommend placing a fraud alert on your credit report and taking steps to protect your personal information.
Does letter 937 mean I owe more taxes?
Letter 937 itself does not necessarily mean you owe more taxes. It is an explanatory letter that details a payment or credit adjustment on your account. The adjustment could result in a higher balance due, a refund, or no change at all. Review the accompanying notices for more details about how the adjustment affects your tax liability.
Can I avoid penalties or interest if I disagree with the adjustment in letter 937?
If you disagree with the adjustment and act promptly to resolve the issue, you may be able to avoid penalties or interest. Contact the IRS immediately to dispute the adjustment and provide any supporting documentation. The IRS will typically suspend penalties and interest while reviewing your dispute, but it’s important to follow up regularly to ensure the matter is resolved.
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 937 explains payment or credit adjustments made to your tax account by the IRS.
- The letter often accompanies other IRS notices and provides additional context for changes to your account balance.
- Verify the information in the letter against your records, and contact the IRS if you notice discrepancies.
- Act promptly if the letter indicates that you owe a balance or need to amend your tax return.
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