Taxpayers can expect that the IRS will send out notices every year for a variety of reasons. It is important for taxpayers to understand what type of notice they received and what their next steps should be in order to remain on the IRS’s good side.
Optima Tax Relief explores what taxpayers should do if they receive letters or notices from the IRS:
- Don’t ignore your notice or letter. The IRS will typically send out notices about federal tax returns or tax accounts. Each notice deals with a specific issue pertaining to a tax return or a tax balance a taxpayer may owe. Review the notice that you receive and follow the directions in order to resolve the tax matter at hand.
- Don’t panic if you receive a notice or letter from the IRS. The IRS and authorized private collection agencies send out letters to taxpayers by mail. More often than not, all taxpayers need to do is to read the letter they have received and take action by reading the directions on their notice.
- Don’t reach out to the IRS unless they have requested you to do so. The IRS typically doesn’t require a response back from a taxpayer unless instructed to do so. If taxpayers receive a notice showing that they owe a balance, the IRS will request that the taxpayer responds with payment.
- Take action in a timely manner. A tax notice may notify a taxpayer that there have been changes to their account regarding taxes owed, a payment request, or a specific issue on a tax return. Acting quickly could minimize any additional interest and penalty charges.
- Review the information placed on the notice. The IRS can send information regarding a change or correction on a tax return. The taxpayer that received the notice should review the information and compare it to their original return.
- Respond to disputed notice. If a taxpayer receives a notice from the IRS that they don’t agree with, they should mail a letter explaining why they dispute the notice. A taxpayer disputing claims made by the IRS should also submit substantiation to the IRS to prove that their claims are incorrect.