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Don’t Panic If You Receive an IRS Notice

June 13, 2013 by Roy Vargis CPA, CMA, CFM, CITA, EA, ACMA, CGMA

A letter from the IRS will probably increase your heart rate a little.  Don’t panic; many of these letters can be dealt with simply and painlessly.

Each year, the IRS sends millions of letters and notices to taxpayers to request payment of taxes, notify them of a change to their account, or to request additional information.  The notice you receive normally covers a very specific issue about your account or tax return. Each letter and notice offers specific instructions on what needs to be done to satisfy the inquiry.

However, the letters also have to advise you of your rights and other information required by law.  Thus, these letters can become overly lengthy and sometimes difficult to understand.  That is why it is important to either call this office immediately or forward a copy of the letter or notice so we can review and handle it accordingly.

Do not procrastinate or throw the letter in a drawer, hoping the issue will go away.  Most of these letters are computer generated and, after a certain period of time, another letter will automatically be generated.  And, as you might expect, each succeeding letter will become more aggressive and less easily dealt with.

Most importantly, don’t automatically pay an amount the IRS is requesting unless you are positive you owe it.  Quite often, you will not owe what is requested and it will be difficult to get your payment back.  It is good practice to have this office review the notice prior to making any payment.

It is important to deal with any IRS correspondence promptly and correctly.  This office can handle these matters for you, so please call for assistance.

Filed Under: Personal Tax, Tax related

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