The Internal Revenue Service sends millions of letters and notices to taxpayers every year. Here are eight things taxpayers should know about IRS notices – just in case one shows up in your mailbox.
Don’t panic. Many of these letters can be dealt with simply and painlessly.
The IRS might send you a notice for a number of reasons. They may request payment of taxes, notify you of changes to your account, or 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 how to satisfy the inquiry.
If you receive a correction notice, you should review the correspondence and compare it with the information on your return.
If you agree with the correction to your account, then usually no reply is necessary unless a payment is due or the notice directs otherwise.
If you do not agree with the correction the IRS made, it is important that you respond as requested. You should send a written explanation of why you disagree and include any documents and information you want the IRS to consider, along with the bottom tear-off portion of the notice. Mail the information to the IRS address shown in the upper-left-hand corner of the notice. Allow at least 30 days for a response.
Most correspondence can be handled without calling or visiting an IRS office. However, if you have questions, call the telephone number in the upper-right-hand corner of the notice. Have a copy of your tax return and the correspondence available when you call.
It’s important that you keep copies of any correspondence with your records.
If you get an IRS notice, don’t panic! And, as always, if you’d like some guidance, just give us a call. We’ll help you with next steps.
RichardL. Lipton CPA & Associates LLC, located in Florham Park, N.J.,draws on its founder’s 10 years as a stockholder and manager offamily-owned Sam’s Tire Co. in Paterson, N.J.
RichardL. Lipton CPA & Associates LLC “is structured to personally servelarge and small clients who have a need for business consultingservices as well as accounting and tax services. We have even developeda niche in the area of forensic accounting. Our clients have realizedthat this combination of skills is extremely valuable in providing thehighest quality professional services in today’s and the future’seconomy.” – Richard L. Lipton CPA
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