{"id":30752,"date":"2017-11-02T15:58:36","date_gmt":"2017-11-02T20:58:36","guid":{"rendered":"https:\/\/resource-center.hrblock.com\/?p=30752"},"modified":"2020-06-08T16:39:31","modified_gmt":"2020-06-08T21:39:31","slug":"irs-letter-5039-income-reporting-verification-notice","status":"publish","type":"post","link":"https:\/\/hrbcomlnp.hrblock.com\/tax-center\/irs\/audits-and-tax-notices\/irs-letter-5039-income-reporting-verification-notice\/","title":{"rendered":"IRS Letter 5039 – Income Reporting Verification Notice"},"content":{"rendered":"

The IRS needs verification of the income that was reported to the IRS by credit card merchants and\/or third-party networks on Forms 1099-K.<\/h2>\n

View notice image<\/a><\/p>\n

Type of Notice: <\/strong>Return accuracy<\/p>\n

Likely next step: <\/strong>Address a business audit<\/a><\/p>\n

Also see: <\/strong>Business penalties<\/a>, Unpaid business taxes<\/a><\/p>\n

Why you received IRS Letter 5039<\/h3>\n
    \n
  1. You received income through a credit card merchant account and\/or through other third-party network transactions.<\/li>\n
  2. You filed a tax return reporting business income.<\/li>\n
  3. The IRS thinks that your tax return shows an unusually high portion of gross receipts attributable to credit card payments. The IRS would typically expect a higher portion of gross receipts from cash and checks for your type of business.<\/li>\n
  4. Letter 5039 was sent to ask you to complete the attached Form 14420, Verification of Income<\/em>. If additional income should be reported, you are asked to attach an amended return to your response. If there is no additional income, then you need to explain why the portion of receipts from credit card sales is higher than expected.<\/li>\n<\/ol>\n

    Notice deadline: <\/strong>30 days<\/p>\n

    If you miss the deadline: <\/strong>Failure to respond may result in the IRS auditing the tax return or sending a notice proposing additional tax, penalties and interest.<\/p>\n

    Want more help?<\/h3>\n

    Your tax professional can deal with the IRS for you. Learn more about H&R Block\u2019s Tax Audit & Notice Services<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"

    The IRS needs verification of the income that was reported to the IRS by credit card merchants and\/or third-party networks on Forms 1099-K. View notice image Type of Notice: Return accuracy Likely next step: Address a business audit Also see: Business penalties, Unpaid business taxes Why you received IRS Letter 5039 You received income through […]<\/p>\n","protected":false},"author":605,"featured_media":26865,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[25,51],"tags":[],"class_list":["post-30752","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-irs","category-audits-and-tax-notices"],"acf":[],"yoast_head":"IRS Letter 5039 - Income Reporting Verification Notice | H&R Block<\/title>\n<meta name=\"description\" content=\"Learn more about IRS Letter 5039 and how to handle an inquiry of your business' income with help from the tax experts at H&R Block.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/hrbcomlnp.hrblock.com\/tax-center\/irs\/audits-and-tax-notices\/irs-letter-5039-income-reporting-verification-notice\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"IRS Letter 5039 - 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