Posted by Trent Accounting

How to avoid IRS matching notice

How to avoid IRS matching notice

hen the information stated on a taxpayer tax return file does not collaborate or match with the information concerning payment and income from the sources specifically the employers and financial institutions such as banks, the Internal Revenue Service is compelled to intervene. So, in order to get an ideas as to how to avoid IRS matching notice, the first step that the taxpayers need to do is that they have to assess and draw comparison between the amounts of a specific tax year that they have stated in their tax return forms and the amounts that are proposed and officially stated by the IRS and the related tax departments.

What is an IRS matching notice?

It is usual that at the end of each tax year, numerous US citizen receive a mail from the IRS that entails a matching notice. At that point, the citizens are expect to specifically draw their attention towards what they have listed and what the information the third part such as the employers and banks have given regarding their tax returns.

So, in this respect, the IRS notice is a proposal that informs the US taxpayers the information the bureau of US treasury Department has received and to what extend it affects their tax payments. Keep in mind that the whenever the US taxpayer receives an IRS matching notice it does not mean that the taxpayer is subjected to legal formalities and is deemed as criminal and sentenced to jail. None of the US citizens go to jail for owing taxes. The purpose of the notice is just to bring the taxpayers attention to make evaluations and double check the information that they have listed so that any dichotomy regarding the taxpayers’ stated amount and the amount given by the third parties can be eradicated.

So, IRS will not put the taxpayer in jail just because he owe them tax payments as it would take a lot of paperwork and formalities for the IRS to take such a decision. And the IRS does not extends its authority in snatching your house, car or financial accounts if you owe tax payments. However, if you cheat or commit fraudulence in the process of paying taxes, then the IRS can take extreme legal action.

How to avoid IRS matching notice?

It is incumbent upon the taxpayer to avoid any possibility of receiving an alarming matching notice from IRS. In order to avoid the IRS matching notice, there are some suggestions for the US taxpayer that would work in their favor. Let’s have a look on them:

  • The taxpayers should keep this point in mind that when they report the amounts of tax return, they should be stated in the right category that ties with the article of their tax return. It is because, IRS notices extremely precise as they are computer-generic. Therefore, the software through which they check the tax returns filed by the taxpayers have the capability of detect the tiniest of errors.
  • Majority of the US taxpayers, in order to save time and streamline the tax return filing procedure, may be tempted to combine all the amounts in a group form. So, in order to avoid the IRS matching notice knocking your inbox, it is advisable that you stringently refrain from doing so. This is not the correct way to report your tax returns to IRS. If the US taxpayers are enrolled in multiple employments, then they have to add each of the respective W-2 separately in the tax software.
  • If the taxpayers happen to acquire any amending information statements such as amended W-2 or 1099, then they need to make sure that they compose that information on the tax filing software that contains a checkbox for it. Or if the taxpayer gets the corrected statement after when he has filed a tax return, he needs to modify the tax return and add the corrected tax return file as an attachment.

These three solutions can perfectly address the main queries of the taxpayers regarding how to avoid IRS matching notice. Keep in mind that if an IRS send you a notice only when it realizes that you have not testified all of your income. 

Trent Accounting