Just because it’s summer vacation, it doesn’t mean the IRS won’t come after you. The IRS will still send letters out to taxpayers that are behind on their taxes. It’s important to remember when you get these letters not to panic. First of all, not every letter you receive will require action or mean that you owe anything and if it does, you usually have a frame of time to respond.
The letter you receive from the IRS will have three important things on it:
- Details about what the taxpayer owes, such as tax, interest and penalties.
- An explanation about why the taxpayer owes the taxes.
- Specific reasons about why the IRS may have denied a refund claim.
These notices and letters from the IRS can be intimidating and confusing. But if you receive one, there are a few things you should do.
- You should read the letter carefully and in its entirety – Most letters will contain specific information about the issue and instructions on how to respond properly.
- If you have your federal tax return, you can compare the information on the letter with your tax return. If the letter shows a change or correction to your income tax return, you should always review the information and compare it to the original return filed.
- Always Respond – You can either respond directly or use an attorney to respond for you.
- You should respond especially if you disagree with the letter
- Reply timely if necessary – If you agree with the modification and information, there is no need to contact the IRS. If there is a specified date of response in the letter, there are two reasons you should respond by that date:
- To minimize additional interest and penalty charges
- To preserve appeal rights if the taxpayer doesn’t agree
- Pay The Taxes Owed – If the letter indicates that you owe money, you should pay as much as you can, even if it is not the entire amount. You can pay online or if you aren’t able to pay off the amount, you can either hire an attorney to negotiate a settlement with the IRS or try to negotiate on your own.
- Contact the IRS if necessary – Most letters that you will receive as a taxpayer will not require any action on your part. If a call or appointment at the taxpayer assistance center seems necessary, you can call the phone number located at the upper right-hand corner of the letter.
- Keep the letter – You should always save copies of any documents from the IRS for your tax records. You should also send them to your CPA or tax attorney if you have one.
If you get a letter and aren’t sure how to tackle your IRS problem, Polston Tax can help. Our team of tax attorneys can respond to every letter you receive and help you get the most affordable resolution with the IRS. Call us today at 844-841-9857 or click below to schedule a free consultation.