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Letters in the Mail

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What to do when you receive a letter from the Internal Revenue Service?

You have gone to your mailbox.  There are bills and junk mail, but it is worse than you thought.  A letter has arrived addressed to you from the Internal Revenue Service, Department of the Treasury (IRS).  Suddenly your mind starts asking questions.  What?  When?  How?  Don't panic!! 

Here's what to do.  First, open the envelope and see what their concern is.  

Next, don't assume that the IRS notice is correct.  In our experience, our clients either do not owe or can get abated more than half of the tax assessments or penalties that the IRS claims are due.  There is no need to pay taxes and penalties that you do not owe.   

Contact us.  For a variety of reasons, we can assist you in receiving a favorable decision from the IRS.  Experience with IRS procedures, a professional relationship with the IRS, and knowledge of the tax code gives us an advantage over the average taxpayer that contacts the IRS.  You may save more than the fee associated with assisting you. 

Last and most importantly, respond to all correspondence from the IRS in a timely fashion.  The biggest mistake a taxpayer can make is to not answer a letter from the IRS.  Not responding makes the IRS think that they are right.  Also, your file goes to the next department, usually a collection department, who might not be as understanding or as helpful, especially since they do not think that you have been cooperative.  A letter requesting additional information or explanation can be your first response, but it does not solve your problem.  The ball is still is your court.  Continue to communicate until the issue is resolved.  Unfortunately, it may take some time, so be persistent.

  

Katherine Nixon is a licensed CPA, financial advisor, and insurance agent.  Securities are offered through J.W. Cole Financial, Inc., Member FINRA, SIPC.  Investment Advisory Services are offered through Jonathon Roberts Advisory Group.  Her firm, Soaring Eagles Tax & Financial Services, LLC is not a CPA firm.  Insurance is offered as an independent agent.