The IRS will
send a notice or a letter for any number of reasons. It may be about a specific issue on your federal tax return or account,
or may tell you about changes to your account, ask you for more information, or request a payment.
Understanding your Notice
notices and letters are numbered and provide contact information for questions. Both are usually shown in the upper right
corner. (If you can't find the number, or have lost your notice, there are general numbers you can call)
Each notice normally tells you:
- What the IRS is changing on your
return or account, or needs more information about
- Why the IRS is making a change or needs that
- Where to send your reply and by when (if a reply is needed)
I owe the IRS and cannot pay
If you can’t pay the taxes you owe, the IRS has payment options available. Which
option might work for you generally depends on how much you owe and your current financial situation. Each option has different
requirements and some have fees.
The most important thing: take action
The IRS can and will levy your bank account or garish wages if you owe and do not address
the issue. Rather than being worried, the best option is to have a plan and address the issue proactively. We can sit down
and address your circumstances and provide steps that would work for you.
If you need to file a tax return, you should. You’ll still owe the taxes, whether or not you file.
You should file your return on time, with or without a payment — the IRS can charge
penalties for filing late. The IRS also charges daily interest on unpaid tax bills, so the longer you wait, the more interest
you will owe.
You just received a notice that your taxes are being audited: what does this mean?
A tax audit is an accounting procedure where the IRS examines your individual or business financial records to ensure you
filed your tax return accurately. If you prove that your initial return was complete and correct, you won't be asked anything
further, but if the IRS finds errors or purposeful mis-reportings, you'll have to pay the recalculated return amount and
any interest penalties.
Just the mere thought of audit
can send shivers down your spine. But if you get a letter requesting an audit. Don not panic. We can represent you with the
IRS during the audit process. Identify the issues and provide guidance on how to proceed with the auditor.