In South Texas, it’s surprisingly common for taxpayers to receive a letter that says their return has been changed and a new amount is due. These adjustments often feel abrupt, but the IRS rarely recalculates returns without a trigger.
Unexpected Balances Usually Start With IRS Data Matching
Every W-2, 1099, retirement distribution, and mortgage form sent to you is also sent to the IRS. If even one doesn’t appear on your return, the IRS assumes the return is incorrect.
Premium Tax Credit Rules in Texas
If your health insurance was purchased through the Marketplace, any income change affects your tax credit. A simple update error can cause hundreds in unexpected tax.
Self-Employment in South Texas
Corpus Christi has a large number of contractors, tradespeople, and gig workers. The IRS commonly adds tax when:
- Estimated payments were missed
- 1099s don’t match the return
- Business expenses were not documented clearly
What Happens When You Don’t File
If the IRS creates a return for you, it will not include dependents, deductions, or credits — producing the highest possible tax.
Why COTTS Law Can Help
COTTS Law steps in to correct the IRS’s numbers, file back tax returns, stop penalties, and negotiate the lowest legal outcome. If the IRS claims you owe more than you expected, it’s important to respond quickly.
