Tax Services

What Should You Do If You Received an IRS Letter?

After you file a tax return you may feel a sense of accomplishment… and breathe a sigh relief. But that relief may be very brief if you fear of getting an IRS letter in the mail.

IRS letters and notices can happen to any individual or business for a number of reasons, and we’re here to help you navigate them. Here are some things to consider if you get an IRS letter in the mail.

Why Does the IRS Send Letters?

There are many reasons why the IRS sends notices. Here are some of them:

  • You are due a larger or smaller refund.
  • They have a question about your tax return.
  • They need to verify your identity.
  • You have a balance due.
  • They need additional information.
  • They changed your return.
  • There are delays in processing your return.

1. Determine What the Notice Means

The IRS provides you with information regarding various notices. On the IRS website, you can type in the notice number into a search bar and receive information regarding the type of notice you received. The number should be located at the top right-hand corner of the notice. If you have further questions regarding your notice, you can also try contacting the IRS. The notice should contain a contact phone number on the top right-hand corner as well.

*Important pointer: If you receive a notice that looks suspicious and you are questioning if it is really from the IRS, you should call 1-800-829-1040 to report the notice.

2. Gather Documentation

If the notice indicates that the IRS is questioning something on your tax return, you will want to gather the relevant records. For instance, if they’re questioning a charitable deduction you’ll need all supporting documentation and information for that deduction.

Pro Tip: Whether you receive an IRS notice or not, make sure you’re prepared. Keep all tax and financial documents for three years. You never know when you’re going to need backup documentation…

3. Find the Right Help

While some people choose to reconcile IRS issues on their own, others feel a sense of comfort working with a tax professional after getting an IRS notice.

An expert tax advisor can walk you through the process of IRS tax audits and notices. If you choose to go this route, gather your tax notice and other tax and financial records so the advisor has a thorough understanding of your situation and can respond accordingly.

4. Respond to the Notice

If the notice requires a response, you will definitely want to respond by the specific date listed in order to:

  • Minimize possible additional interest and penalty charges
  • Preserve your appeal rights if you don’t agree with the notice

*Keep in mind: IRS notices may not always be correct. That is why it is important to check your records and determine for yourself if you agree with the notice. 

Year-round, Block Advisors offers solutions to taxpayers who have received an IRS letter, and who need help. We resolve a broad range of tax problems – from the simple to the complex, including audits, penalties, collection problems, and other tax account issues.

An experienced advisor will:
+ Help taxpayers file any missing returns, if necessary
+ Prevent or minimize additional tax assessments
+ Reduce or eliminate any tax, penalties, and/or interest owed
+ Obtain the best possible payment arrangements on any balance owed

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