Why the IRS Says Your Information Doesn’t Match?
If the IRS says your tax return information doesn’t match their records, it usually means there’s a difference between what you reported and the data the IRS received from employers, banks, or other third parties. This notice does not always mean you did something wrong, but it does require a prompt review and response to avoid delays, penalties, or additional taxes.
Received an IRS Mismatch Notice?
Below is a clear explanation of what the mismatch means, why it happens, and how to fix it.
What It Means When the IRS Says Your Information Doesn’t Match
The IRS compares every tax return with information reported to them by employers, financial institutions, and other sources.
If the numbers, names, Social Security numbers, or filing details don’t align, the IRS sends a notice explaining the discrepancy.
Reasons include:
- Missing or incorrect income from a W-2 or 1099
- Typographical errors in Social Security numbers or names
- Filing status or dependent conflicts
- Differences between reported credits or deductions and IRS records
- Late or corrected forms submitted after you filed
In most cases, resolving the issue simply involves reviewing the notice, confirming your documents, and responding with the correct information.
What Triggers an IRS Information Mismatch Notice
Outdated Records
IRS information mismatches often happen when your name, address, or filing identity has changed but was not updated with the IRS or the Social Security Administration.
For example, if you moved and did not notify the IRS, their records may still show your previous address. Filing a return with a new address can trigger a mismatch notice.
Name changes can cause the same issue. The name on your tax return must match the name on file with the Social Security Administration. If you changed your name but have not updated your Social Security card, you will usually need to continue filing under your previous name until the update is complete.
You can update your mailing address with the IRS by submitting Form 8822.
Transcription Errors
Simple data entry or calculation mistakes are another common reason the IRS says your information does not match.
Typos, incorrect Social Security numbers, or math errors on your tax return can cause processing issues. In some cases, the IRS may also enter information incorrectly during processing.
Even small spelling or number errors can cause automated IRS systems to flag a return and send a notice.
Third-Party Tax Discrepancies
The most common cause of an IRS mismatch is a difference between the income reported on your return and the income reported to the IRS by employers, banks, or other financial institutions.
For example, a third party may submit a W-2 or 1099 that does not match the amounts you reported.
Other forms that frequently create discrepancies include:
- Form 1099-B for brokerage income
- Form 1099-R for retirement or pension distributions
- Schedule K-1 for partnership income
In some situations, a third party issues a corrected tax form after you file, and you may not receive the updated version. When this happens, the IRS will request an explanation for the difference.
Identity Theft
In rare cases, an IRS mismatch notice may indicate tax-related identity theft.
For example, someone could use your Social Security number to file a fraudulent return or report false income. When IRS systems detect conflicting filings, they may flag your account and send a notice.
To help prevent this, the IRS may issue you an annual Identity Protection PIN (IP PIN). This six-digit number must be included on your tax return before it can be electronically filed.
How to Fix an IRS Information Mismatch
If the IRS says your tax return information doesn’t match their records, the issue is usually resolved by reviewing the notice, correcting any errors, and providing accurate documentation. Acting quickly can prevent penalties, refund delays, or additional IRS notices.
1. Review the IRS Notice and Your Records
Start by carefully reading the IRS notice and comparing it with your own documents.
Check recent tax returns, W-2s, 1099s, and other financial statements for differences in:
- Income amounts
- Names or Social Security numbers
- Filing status or dependents
- Credits or deductions claimed
If you find incorrect or outdated information, update it before responding to the IRS.
2. File an Amended Tax Return if Needed
If your original return contains errors, you may need to submit an amended return using Form 1040-X.
An amended return corrects inaccurate income, filing status, credits, or deductions.
Keep in mind:
- The IRS processes amended returns more slowly than original filings
- Starting the amendment early helps reduce delays or penalties
3. Contact Employers or Financial Institutions
When the mismatch comes from third-party reporting, contact the organization that issued the form.
For example:
- Ask an employer to issue a corrected W-2
- Request a corrected 1099 from a bank, broker, or payment platform
Once corrected forms are issued, provide the updated information to the IRS if required.
4. Contact the IRS for Clarification
If the notice is unclear or you cannot find the source of the discrepancy, contact the IRS directly using the phone number listed on the notice. For general individual tax questions, you can call the IRS at +1 (800) 829-1040. If you are calling from outside the United States, use +1 (267) 941 -1000 (not toll-free). You can also review official guidance on IRS notices.
During the call:
- Ask what specific information does not match
- Confirm what documents the IRS needs
- Write down the representative’s name, ID number, date, and summary of the conversation
Keeping detailed records helps resolve the issue faster if follow-up is needed.
5. Consider Professional Tax Help
IRS notices can be stressful and complex, especially for Americans living abroad.
Working with an experienced CPA, Enrolled Agent, or expat-focused tax professional can help you:
- Understand exactly why the IRS flagged your return
- Communicate with the IRS and respond correctly
- Amend filings and prevent future mismatches
Greenback Expat Tax Services specializes in helping U.S. citizens abroad resolve IRS notices, correct filing issues, and stay compliant with U.S. tax rules. Getting expert support early can often resolve the problem faster, with less stress and lower risk of penalties.
Not Sure Which Document Caused the Error?
How to Avoid an IRS Mismatch
Maintain Accurate and Organized Records
The best way to avoid an IRS mismatch notice is to maintain accurate and up-to-date records. Keep track of all your financial documents, including tax statements (like W-2s and 1099s), deduction records, and previous tax returns. Organize these documents by year and type for easy access. Then regularly cross-check your documents against your tax filings to ensure consistency.
This will also make it easier to identify and correct any errors if the IRS contacts you about a discrepancy.
Double-Check All Tax Forms
When filing your taxes, pay close attention to all forms you receive or submit. If you catch a mistake before filing your return, you can avoid having to amend it later. Carefully review any W-2s or 1099s you receive, and if you notice any errors on a form sent by your employer or a government agency, contact the issuer immediately for a correction.
Educate Yourself on Tax-Related Identity Theft
Be aware of the signs of tax-related identity theft, such as receiving a notice about a tax return you didn’t file, additional taxes owed, refund offsets, or IRS records indicating collection actions taken against you for a year you didn’t file a tax return. If you suspect identity theft, contact the IRS immediately and follow their guidance.
Regardless of any discrepancies in your tax return, it always pays to be aware of potential scams. The IRS provides valuable insights on how to spot a scam and protect yourself from fraud. You can learn more about this on the IRS website.
Get Expert Help From Greenback Expat Tax Services
Filing U.S. taxes from abroad can be complex, especially when you receive an IRS notice about mismatched information. Working with an experienced, expat-focused tax professional helps ensure your return is accurate, compliant, and fully aligned with IRS records.
Greenback Expat Tax Services specializes in helping Americans living overseas resolve IRS notices, correct filing errors, and stay compliant with U.S. tax requirements. Their team of CPAs and Enrolled Agents can:
- Review your IRS notice and identify the exact issue
- Communicate with the IRS and respond on your behalf
- Amend returns and prevent future mismatches
- Provide clear guidance tailored to your expat situation
Getting expert support early can reduce stress, avoid penalties, and resolve IRS discrepancies faster.
Start with Greenback today to get trusted help resolving your IRS notice and keeping your U.S. taxes on track.
Resolve Your IRS Mismatch the Right Way
This article is for informational purposes only and does not constitute tax, legal, or accounting advice. Every expat’s situation is different, so for guidance specific to your IRS notice and tax return, contact Greenback to speak with an expat tax specialist.
