The Internal Revenue Service (IRS) sends out millions of letters to taxpayers after each tax season. Not every notice, however, is bad news. There are a variety of reasons why you may receive a letter. Some of the most common include notification of a balance due or delay in processing, requests for verification of identity, and questions about your tax return. Thankfully, most notices are straightforward and easily resolved. If you recently received an IRS letter, here’s what you should do.
Don’t Panic
Not every IRS letter ends in an audit. As we mentioned previously, most notices deal with a specific issue regarding your tax return or tax account. Don’t ignore the letter or freak out. Just take a deep breath and keep calm.
Follow the Instructions
IRS notices generally provide detailed instructions on how to resolve the issue at hand. Be sure to follow these carefully. Although most notices will not require you to call or visit the IRS in person, there could be time-sensitive documentation that you’ll need to provide. In some cases, you may be also required to sign a form stating you agree with the IRS changes, or you may be given a certain amount of time to respond if you disagree. Keep in mind that you should never reply to a notice unless specifically instructed to do so.
Review the Information
Some IRS letters deal with changes or corrections to your tax return. Carefully review the information and compare it to your original return. If you agree with the changes, no action will typically be required, unless you need to make a payment. Just be sure to make notes on your return about the corrections and keep an updated copy for your records. If you disagree with the changes, however, you’ll need to send a letter to the IRS. It should include details about what you are disputing, as well as documentation to support your position. All items should be mailed to the address on the contact stub included with the notice.
Take Timely Action
To preserve your legal rights, and minimize potential penalties and interest, submit items by the required due date. This is especially important for those who owe taxes. If you’re unable to pay in full by the due date, send as much as you can and ask about payment plans.
Avoid Scams
The IRS will never send out a notice by social media or text message. Unfortunately, that doesn’t mean that every letter you receive by postal mail is actually from the IRS. Scammers are relentless. They will attempt to get your personal and financial information through harassing phone calls, fake emails, and bogus notices. Don’t fall victim to these IRS tax scams. If you are uncertain that the letter you received is legitimate, contact the IRS before taking any action. You can call 800-829-1040 or email phishing@irs.gov for assistance.
IRS Letter Help
Receiving a letter from the IRS is not high on anyone’s list of favorite things, but there’s no reason to panic. Once you’re certain that the notice is legitimate, carefully review the contents, and follow the instructions. If you are uncertain about anything in the letter, you can contact the IRS for additional assistance, or give Tax Defense Network a call. We can help you better understand the letter, preserve your taxpayer rights, and review your legal options. Call 888-218-9726 for a free consultation today.