Tuesday, September 18, 2012

Don't panic if the IRS sends you a letter


There are many reasons why the Internal Revenue Service could be contacting you. Some contacts involve very minor corrections; some are for serious changes that could involve a lot of money. Sometimes the IRS is correct in what they are seeking; sometimes they are wrong.

An IRS notice can be something as simple as a correction to a social security number or as significant as a billing for more taxes, plus interest and penalties.

So, what should you do if you get a letter from the IRS?

Here is a list of do's and don'ts concerning contact from the IRS.

* Don’t panic, but don't ignore the notice; the problem will not go away.

* Act promptly. A quick response to the IRS may eliminate further, more complicated correspondence.

* Follow the instructions in the IRS notice. Any correspondence you have with the IRS must make reference to the specific notice you are addressing.

* If you agree with the IRS adjustment, you do not need to do anything unless a payment is due.

* If the IRS is requesting more money or a significant amount of new information, be sure to contact your tax preparer immediately.

* Always provide your tax preparer with a copy of any IRS notice, regardless of how minor it appears to be.

* Keep a copy of all the IRS correspondence with your tax return copy for the year in question.

If you would like more information or assistance with any tax matter, please contact our office. We are here to help you.

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