Month: July 2018

It can be a terrifying experience when you go to retrieve your mail, and among the usual bills and junk mail, there is the “dreaded” plain white envelope from the Internal Revenue Service.  Like most Americans you get this uneasy feeling in your gut and the anxiety sets in.

Don’t Panic, the IRS sends out millions of letters to taxpayers every year, most of these are automated. Notwithstanding, you should open the letter immediately as many of these notices must be addressed by specific due dates.  Ignoring these notices or putting them off could worsen the situation, especially if they are disputing money owed, they can rapidly rack up interest and penalties! However, as mentioned before these notices should not always be the cause for concern.  The IRS send out notices for a host of reasons, first thing to do is understand the reason for the notice.

Why was I notified by the IRS?

The IRS sends notices and letters for the following reasons:

• • You have a balance due.
  • You are due a larger or smaller refund.
  • We have a question about your tax return.
  • We need to verify your identity.
  • We need additional information.
  • We changed your return.
  • We need to notify you of delays in processing your return.

Once you have identified the reason for the notice maintain calm, and read it very carefully. If you are unsure how to proceed or simply prefer to have more experienced person address the IRS on your behalf, contact the professionals at TaxPM™ today!

Here are some recommended actions that the IRS advises if you’ve received a letter from them.

Read

Each notice or letter contains a lot of valuable information, so it’s very important that you read it carefully. If they changed your tax return, compare the information we provided in the notice or letter with the information in your original return.

Respond

If your notice or letter requires a response by a specific date, there are two main reasons you’ll want to comply:

• to minimize additional interest and penalty charges.
• to preserve your appeal rights if you don’t agree.

Pay

Pay as much as you can, even if you can’t pay the full amount you owe. You can pay online or apply for an Online Payment Agreement or Offer in Compromise. Visit IRS payments page for more information.

Keep a copy of your notice or letter

It’s important to keep a copy of all notices or letters with your tax records. You may need these documents at a later date.

Contact IRS

They provide their contact phone number on the top right-hand corner of the notice or letter. Typically, you only need to contact them if you don’t agree with the information, if they requested additional information, or if you have a balance due. You can also write them at the address in the notice or letter. If you write, allow at least 30 days for their response.

The location of the notice or letter number

You can find the notice (CP) or letter (LTR) number on either the top or the bottom right-hand corner of your correspondence.

When the notice or letter looks suspicious

Please visit IRS Report Phishing page if you receive a notice or letter that looks suspicious and was designed to appear as though it came from the IRS. You can also call 800-829-1040. The IRS never ask taxpayers for personal information via e-mail or social media.