Reaching into their mailbox and pulling out an envelope with the three letters, ‘IRS’, makes many people sweat, and some even go into full-blown panic. However, receiving a notice from the IRS doesn’t automatically mean bad news.
Each year, the Internal Revenue Service (IRS) sends millions of letters and notices to taxpayers – and not all of them are related to tax audits. That’s right – while most pertain to your filed taxes, you may also get a notice from the IRS due to: a corrected tax return, information verification, or an update of the status of processing your return.
So, before you panic and do anything rash, you should stay calm, open the mail, and understand what it is the IRS needs from you.
Here are some things you should know when you get a notice from the IRS – and tips for dealing with them.
1. Breathe. First and foremost, don’t panic. Breathe – and remember, not all IRS letters are bad. Read the letter calmly and assess its contents.
2. Each IRS notice has detailed instructions, so make sure to read it carefully. It will tell you what steps you have to do.
3. An IRS notice typically covers your tax account or federal tax return. It will be about a specific issue, such as a correction to your tax return or changes to your account. It may also ask you to verify your details or ask for more information. It could also explain that you owe tax and that you need to pay the due amount.
4. If you receive a notice about a correction on your tax return, review it carefully.
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- If you agree with the correction, you usually don’t have to reply unless a payment is due.
- If you don’t agree with the correction that the IRS made, make sure to respond as requested. Respond to the IRS in writing and state why you disagree with their correction. Also, collate all the documents and records you wish the IRS to consider, along with the bottom tear-off portion of the notice. Then, mail your response to the IRS address shown in the notice. You’ll have to wait at least 30 days to hear back from the IRS.
- Most of the time, you don’t need to call the IRS (or visit an IRS office) when you get a notice. If you do have inquiries or concerns, you can call the number found in the notice letter. Bonus tip: Make sure that you have the notice and a copy of your tax return with you when you call! This will help the IRS answer your questions.
- Watch out for tax scams. The IRS sends notices and letters by mail. The IRS does NOT contact people by social media or email to ask for financial or personal information.
Work with a Mount Pleasant NC CPA to Meet IRS Requests
If you have questions, or if you aren’t sure how to meet the demands of the IRS, it would be ideal to work with a tax professional like Susan Gordon Lee. Susan can assist with IRS audits and an array of IRS tax problems.
Reach out today to learn more!