The first thing most people do when they receive a notice from the IRS is freak out. A notice from the IRS does not necessarily mean that you or your tax preparer did anything wrong. The most important thing to remember is to not panic.
Make sure you read the notice carefully to determine the issue. If after reading the notice you are unsure what it says, then call the number in the upper right hand portion of the notice to speak to an IRS official who will be able to help you. Once you determine the issue, gather all relevant documents and tax returns and review the paperwork.
The worst course of action is to do nothing. Do not just ignore the notice—the IRS will not forget about the issue and your problems could increase.
After determining what the notice is about, then you will have to act accordingly. If the notice is proposing changes to your return and you agree with the changes, you do not need to respond to the IRS. If you disagree with the changes, you should respond to the IRS by the reply by date on the notice and explain what items you take issue with. The notice should have an address where to send your reply. Make sure that you save any copies of correspondence with the IRS for your files.
If you use a professional tax preparer, contact them immediately and give them a complete copy of the notice. Most likely, the professional will be able to research and resolve the issue fairly quickly. If you do not have a paid preparer, consider contacting one for help with dealing with any issues that you do not fully understand.
We here at the Tax Club are committed to assisting you with any or all of your tax issues. Please contact us for a free tax consultation at (866)840-1829 x5438
