6 Tips for Dealing with An IRS Notice
Provided by: Kyle Meissner, CPA, Manager
The Internal Revenue Service (IRS) often sends letters or notices to taxpayers to inquire about their tax returns, inform them of any account modifications or request payments. Receiving correspondence from the agency should not trigger you to panic, but it is also essential to respond promptly. Here’s what to do if you receive a notice from the IRS.
- Don’t panic. The first step is to remain calm and speak with a trusted tax professional. Receiving an IRS notice does not necessarily mean you owe additional taxes or will be audited. Oftentimes, the notice is simply a request for more information or an explanation of specific items on your tax return.
- Read the notice carefully. Make sure you read the notice thoroughly and understand the reason for the communication. IRS notices are typically specific about what they are requesting from you. Does the IRS think you owe more in taxes? Do they owe you a refund? The notice will also include a deadline for responding, which is usually 30 days from the date of the notice. Make sure you mark this deadline on your calendar and plan to respond promptly.
- Review the information. If the notice is related to a tax return you filed, review the original return carefully. If you agree with the information in the notice, it’s wise to make notes about the requested corrections on your copy for your records. Typically, you will only need to take action or contact the IRS if you don’t agree with the information, if the IRS requested additional information, or if they have a balance due.
- Take any requested action. If the IRS requests additional information or payment, you can now send them the content they are asking for. If you disagree with the IRS, you can send them an explanation letter stating why you disagree with the notice, including potential supporting documents. You can send it to the address on the contact stub included with the notice, and you should include information and documents for the IRS to review when considering the dispute.
- Keep the letter or notice for your records. Make sure to keep copies of all correspondence between you and the IRS, including any letters or emails that you send or receive. This will help you keep track of the process and ensure you have a record of all communication with the IRS. You can ask the IRS for a penalty removal, which can potentially remove penalties once every three years under the “First Time Penalty Abatement.”
- Seek professional help. If you are unsure about how to respond to the notice or if you need help gathering the necessary documents, consider seeking professional help from an accountant or CPA. We can assist you in understanding the notice and preparing a response, as well as help you navigate the IRS system and ensure you are complying with all tax laws and regulations.
Events & Deadlines
Subscribe and stay informed on policy changes that could have an impact on you.
Privacy & Usage: The information on the Cordell, Neher & Company, PLLC website is provided with the understanding that it should not be substituted, in any way, for consultation with a professional Certified Public Accountant, accountant, tax, legal or other competent advisor. Cordell, Neher & Company, PLLC makes every attempt to ensure that the information contained on their websites are obtained from reliable sources, but is not responsible for any errors and/or omissions or from the results obtained from the use of any information. This site contains links to servers maintained by other organizations. Cordell, Neher & Company, PLLC cannot provide any warranty regarding the accuracy or source of information found on any of these servers, the content of any file the user might use to download from a third-party site, and is not responsibility for the content found on any of these servers or for any links these servers maintain with other servers.
Avantax financial professionals may only conduct business with residents of the states for which they are properly registered. Please note that not all of the investments and services mentioned are available in every state. Securities offered through Avantax Investment Services SM, Member FINRA, SIPC. Investment Advisory Services offered through Avantax Advisory Services SM. Insurance services offered through an Avantax affiliated insurance agency. Method 10® is property of Avantax Wealth ManagementSM All rights reserved 2020. The Avantax family of companies exclusively provide investment products and services through its representatives. Although Avantax Wealth ManagementSM does not provide tax or legal advice, or supervise tax, accounting or legal services, Avantax representatives may offer these services through their independent outside business. This information is not intended as tax or legal advice. Please consult legal or tax professionals for specific information regarding your individual situation.
Check the background of your financial professional on FINRA's BrokerCheck Avantax affiliated advisors may only conduct business with residents of the states for which they are properly registered. Please note that not all of the investments and services mentioned are available in every state. Securities offered through Avantax Investment ServicesSM, Member FINRA, SIPC, Investment Advisory services offered through Avantax Advisory ServicesSM,Insurance services offered through an Avantax affiliated insurance agency. 3200 Olympus Blvd., Suite 100 Dallas, TX 75019 972-870-6000.
The Avantax family of companies exclusively provide financial products and services through its financial representatives. Although Avantax Wealth ManagementSM does not provide or supervise tax or accounting services, Avantax Representatives may offer these services through their independent outside business. Content, links, and some material within this website may have been created by a third party for use by an Avantax affiliated representative. This content is for educational and informational purposes only and does not represent the views and opinions of Avantax Wealth ManagementSM or its subsidiaries. Avantax Wealth ManagementSM is not responsible for and does not control, adopt, or endorse any content contained on any third party website.
This information is not intended as tax or legal advice. Please consult legal or tax professionals for specific information regarding your individual situation. Investments & Insurance Products: Are not insured by the FDIC or any federal government agency- Are not deposits of or guaranteed by the bank or any bank affiliate- May lose Value
Avantax Investment ServicesSM and Avantax Advisory ServicesSM are not affiliated with CNC Financial Group, LLC.
Leave a Comment