Every year, the IRS sends out millions of notices to taxpayers, and quite a few of them generate questions for Orange County tax attorneys. But getting a letter or notice from the IRS does not necessarily mean you have something to worry about. Here are some tips to keep in mind if you receive one of these notices:
1. There are many reasons that the IRS sends notices to taxpayers. The notice may request information, request payment of taxes, or notify you of a change to your account. The notice you receive normally covers one very specific issue about your taxes.
2. There is no need to panic. Many of these notices can be dealt with simply and easily.
3. If the correction to your account is accurate, usually no reply is necessary unless a payment is due.
4. If you disagree with the correction the IRS made, you need to respond as requested. Write to explain why you disagree, and include any documents and information you wish the IRS to consider, along with the bottom tear-off portion of the notice. Mail the information to the IRS address shown in the upper left-hand corner of the notice. Allow at least 30 days for a response.
5. Compare correction notices with your records. Don’t simply take the IRS’s word on the correction.
6. You can usually handle these matters without calling or visiting an IRS office. But, if you have questions, call the telephone number in the upper right-hand corner of the notice. Have a copy of your tax return and the correspondence available when you call, to help the IRS respond to your inquiry.
7. There are always specific instructions on what you need to do to satisfy the inquiry. If not, call the number on the notice.
8. Keep copies of the notice, and any correspondence related to it, with your records.
Source: IRS.gov “Eight Things to Know If You Receive an IRS Notice” 8/26/2010