If you’re on the receiving end of correspondence from the Internal Revenue Service (IRS), you’re not alone: it’s correspondence season. And the latest batch of letters to appear in mailboxes may focus on health care.
Correspondence season is the term that tax professionals use to describe the period after tax season officially ends. As the IRS processes tax returns, their systems are hard at work matching taxpayer data, checking for missing information and the like. The result? Those bills and notices that show up in your mailbox.
Earlier this month, the IRS announced that they have begun sending letters to taxpayers who might have failed to report income and pay the resulting tax from virtual currency transactions or did not report their transactions properly. But crypto isn’t the only issue attracting attention. The IRS reviews and responds to many potential reporting omissions, including the failure to report health care coverage or pay the resulting penalty, for the 2018 tax year.[…]