Tax notifications have always caused panic among many clients. One thing to remember is that many of these ads are "automatically generated" and are not always up-to-date or accurate. If you receive a warning, you may have to wait. As you read in the following suggestion, when you get a notice from the IRS - do not panic. Often you can call the IRS, and I suggest you do so on one day in the week, except Monday or Friday, and inquire about the notice you received. Depending on the agent you receive, many of these alerts can be resolved directly on your phone.
The IRS sends taxpayers millions of letters a year for a variety of reasons. Consider the following tips for optimally managing an IRS letter or alert:
1. Do not panic. A simple response will take care of most letters and communications from the IRS.
2. Do not ignore the letter. Most IRS notifications refer to federal tax returns or tax bills. Each alert addresses a specific topic and includes specific instructions on what needs to be done. Read the letter carefully. Some warnings or letters require a response on a given date.
3. Answer in time. A notification may affect changes to the taxpayer's account, the fees owing, or a request for payment. Sometimes a notification may require more information about a particular item or tax return. A quick response could reduce interest and other penalties.
4. If an ad indicates a modified or amended income tax return, review the information and compare it with the initial performance. If the taxpayer agrees, he should note the corrections to their copy of the tax return for his records. Typically, you do not need to respond to a warning unless you have been specifically instructed to do so or make a payment.
5. Taxpayers should respond to an opinion with which they disagree. They should send a letter explaining why I do not agree with the address found in the contact at the bottom of the notification. Include information and IRS documents to consider and allow at least 30 days to receive a response.
6. You do not need to call the IRS or set a date in a service center for taxpayers to receive most notifications. If you need to make a call, use the phone number in the upper right corner of the notification. Make sure you have a copy of your tax slip and the corresponding notifications when you call.
7. Other warnings may advise you on corrections to your tax return. Compare the corrections made to your original return.
8. Send the requested letter and documents to the address provided by the IRS; It is usually in the upper left corner of the warning. Include the first part of the notification instance that includes the name, address, and social security number.
9. Always keep copies of alerts received with tax registrations.
10. The IRS and the authorized private collection agency will send letters and notices by mail. The IRS will not require payment in a specific manner, such as a credit card or a prepaid debit card. Taxpayers have several options to pay the fees.
Once the problem is resolved, take the necessary steps to avoid receiving letters in the future. Many can be avoided simply by completing a specific tax return. Erroneous errors will almost certainly trigger an IRS alert. Pay close attention to the statement, check the calculations, review the rules and sign the bottom line.
According to the 2009 IRS data, the probability of being verified is low: only 1% of all returns are verified. However, some elements of a tax statement increase the risk of verification. Here are some red flags to keep in mind:
