A letter from the IRS doesn’t mean you need to panic.
There could be a few reasons why the IRS sent you a letter. Often, the issue can easily be worked out and is simple to resolve. Things like missing or inadequate information, incorrect account details, or missed payments are all common reasons why.
But, given how shocking it is to get one, we’ve outlined the top five things you should know.
1. You Might Not Need to Call
If you received a letter, you usually wouldn’t need to call or visit an IRS office. This news comes as a relief to many who are happy to know that they can simply follow the instructions in the letter. These instructions typically include the directions of what you’ll need to do (such as mail-in more information or fill out forms) which can all easily be sent back to them.
2. The Letter Will Tell You Why
The first question most people have when they get a letter from the IRS is ‘why’. And, the answer to that question will be in the notice that was sent. If you need help understanding what the letter says, consider visiting the IRS’s website where you’ll find a tool that’s used to help explain them. Called ‘Understanding Your IRS Notice or Letter’, recipients have a useful guide on common letter types and information on how to handle them.
If you still are having a difficult time understanding why you got one, consider speaking with a financial professional. Someone like an accountant, financial planner, or advisor who can assess the letter, review what you’ve already submitted, and help you through the process.
3. When to Reply
If you agree with the information or changes that the IRS is asking for in the letter, then you might not need to reply.
But even if you disagree with what the letter says it would still be in your best interest to act quickly. Penalties and interest could be accruing on an unknown balance. Additionally, you might lose your right to appeal if you delay the response for it. However, the letter will outline what actions are needed and the due date for a response.
4. How to Reply
All notices and letters will tell the recipient where to send the response. It’s important to note that the IRS generally does not allow communication via email or online portals. This means there will likely be a mailing address or a fax number to where you can direct your response to.
5. Speaking to Someone
In the letter, you probably won’t be able to find any direct contact information. But there is a general toll-free number (800-829-1040) that can be called if you’re looking for more information on your case. Just be sure to have a copy of your tax return and the letter available for when you call so you can provide a specific case number and address to the agent.
In rare instances, recipients might find a specific employee’s direct number (or a department manager’s number) listed on it. However, this will only happen if an employee has been assigned to it.
Ultimately, if you are still at a loss with what to do consider speaking to the professionals. Someone like us at A.P Accounting and Tax Services. We’ll be able to review the letter and your return to determine what the issue is and how to best respond.
So, if you’d be interested in learning more, or knowing what services would benefit you, give us a call at 407-328-5001
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