Explore All Topics

IRS Letter 5044 – Second Notice

1 min read


1 min read


Second request to verify income that was reported to the IRS by credit card merchants and/or third-party networks on Forms 1099-K.

Type of Notice: Return accuracy

Likely next step: Address business audits

Also see: Business penalties, Unpaid business taxes

Why you received IRS Letter 5044

  1. You received income through a credit card merchant account and/or through other third-party network transactions.
  2. You filed a tax return reporting business income.
  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.
  4. Letter 5043 was sent to inform you that gross receipts may be underreported. The letter requested that you review the Forms 1099-K listed on the letter, but you did not respond.
  5. The IRS sent Letter 5044 as a reminder to review the Forms 1099-K included on the notice. You are asked to file an amended return if additional income should be reported. If there is no additional income, then you need to explain why the portion of receipts from credit card sales is higher than expected.

Notice deadline: 30 days

If you miss the deadline: The IRS may audit the return or propose additional taxes, penalties, and interest.

Want more help?

Your tax professional can deal with the IRS for you. Learn more about H&R Block’s Tax Audit & Notice Services.

Was this topic helpful?