Varley Law Office PLC

Varley Law Office PLC
201 NE 2nd ST, Stuart, Iowa 50250; (515) 523-2456

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Friday, June 22, 2018

When You Get a Letter from the IRS


Adapted from IRS Tax Tip 2018-95  - Every year the IRS mails millions of letters to taxpayers for many reasons. Here are some tips and suggestions for taxpayers who receive one:

Don’t ignore it. Most IRS letters and notices are about federal tax returns or tax accounts. Each notice deals with a specific issue and includes specific instructions on what to do.

Don’t panic. The IRS and its authorized private collection agencies do send letters by mail. Most of the time you just need to read the letter carefully and take the appropriate action. 

Do take timely action. A notice may reference changes to your account, taxes owed, a payment request, or a specific issue on a tax return. Taking timely action could minimize additional interest and penalty charges.

Do review the information. If the letter is about a changed or corrected tax return, review the information and compare it with your original return. If you agree, make notes about the corrections on your personal copy of the tax return, and keep it for your records.

Don’t reply unless instructed to do so. There is usually no need to reply to a notice unless specifically instructed to do so. On the other hand, taxpayers who owe should reply with a payment. IRS.gov provides information about payment options.

Do respond to a disputed notice. If you don't agree with the IRS,  mail a letter explaining why not.  Include information and documents for the IRS to review when considering the dispute. Send your letter to the address on the contact stub at the bottom of the notice, and allow at least 30 days for the IRS to respond.

Don't call the IRS. It's usually not necessary.  If you feel you must contact the IRS by phone, use the number in the upper right-hand corner of the notice. Have a copy of the tax return and letter handy when calling.

Do avoid scams. The IRS will never initiate contact using social media or a text message. The first contact from the IRS usually comes in the mail. Taxpayers who are unsure if they owe money to the IRS can view their tax account information on IRS.gov.

1 comment:

Jon Sigurdsson said...

Thanks for the warning!
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