An IRS notice in your mailbox can be a source of stress and worry. However, by taking the right steps, you can navigate the situation effectively. This article from BadranTax will guide you through what to do if you receive an IRS notice and how to get the professional tax help you may need.
Did you know the IRS sends around 170 million notices to individual taxpayers every year? That’s a significant number, and it highlights how common these notices are. So, if you receive one, you’re not alone!
First, Don’t Panic!
Receiving an IRS notice doesn’t necessarily mean you’re in trouble. Notices can be for a variety of reasons, including:
- Informational notices: These may alert you of a change to your tax account, such as an update to your tax return or upcoming deadlines.
- Balance due notices: These inform you of unpaid taxes you owe, along with instructions for payment.
- Audit notices: The IRS has selected your return for further examination.
What to Do:
Read the Notice Carefully: The notice will explain the reason for contact, the amount of any tax owed (if applicable), and specific instructions on how to respond. It will also include a deadline for response.
Gather Your Documents: Locate your tax return, relevant financial documents, and any previous correspondence you may have received from the IRS regarding the issue.
Respond by the Deadline: It’s crucial to respond to the IRS notice by the deadline listed. Even if you disagree with the notice, a timely response demonstrates your cooperation.
What Not To Do:
- Ignore the Notice: Ignoring the notice will only worsen the situation and may result in penalties and interest accrual on any taxes owed.
- Panic and Pay Immediately: Don’t send payment without understanding the issue. Review the notice carefully and consult with a tax professional if needed.
- Try to Handle It Alone: Tax law can be complex. If you’re unsure about how to respond or disagree with the notice, consider seeking professional tax help.
Getting Tax Help:
- Internal Revenue Service (IRS): The IRS website offers a wealth of information on various tax topics, including taxpayer resources for understanding and responding to notices: https://www.irs.gov/individuals/understanding-your-irs-notice-or-letter.
- Tax Advocate Service: The Taxpayer Advocate Service (TAS) is an independent organization within the IRS that can help taxpayers navigate tax problems. They may be able to intervene on your behalf with the IRS: https://www.taxpayeradvocate.irs.gov/
- Tax Professional: Consider seeking help from a qualified tax professional, such as an Enrolled Agent or tax attorney. They can review your situation, advise you on the best course of action, and represent you before the IRS if necessary.
BadranTax Can Help!
At BadranTax, we understand that dealing with the IRS can be daunting. Our team of experienced tax professionals, including Enrolled Agents and tax attorneys, can help you:
- Understand your IRS notice and the underlying tax issue.
- Develop a plan to respond to the notice and resolve the issue effectively.
- Negotiate with the IRS on your behalf to minimize tax liabilities and penalties.
- Represent you before the IRS during audits or appeals.
