How to Respond Effectively to an IRS Notice
There may be no bigger pit-in-your-stomach creator like checking the mail and receiving a letter address from the IRS. Chances are high that you just got a notice. But it’s important to remember that not all notices are indicative of a serious problem. In fact, many notices are routine requests for additional information or clarification on your tax return. Responding to IRS notices promptly and effectively is essential to resolving any potential issues and ensuring your tax matters are in order. We’ll guide you through the steps we’ve learned over the years to respond to IRS notices confidently and efficiently.
- Read the Notice Carefully
When you receive an IRS notice, take a deep breath and carefully read the entire notice. It will specify the reason for the communication, provide instructions on what to do next, and often include a deadline for response. Understanding the nature of the notice is crucial before you take any action. - Stay Calm and Gather Documents
While receiving an IRS notice might feel unsettling, it’s important to remain calm. Gather the necessary documents, including your tax return, forms listed or identified, and any supporting documentation related to the issue mentioned in the notice. Having all relevant information on hand will facilitate a smoother response process. - Verify the Information
Before responding, review your tax return and compare it to the information in the notice. Mistakes can happen, and sometimes discrepancies are simply due to errors in data entry. If you identify an error on your tax return, correct it before proceeding. - Contact Your Tax Preparer
Reach out to your tax preparer to discuss the notice. They can help you understand the notice’s implications, verify the accuracy of your return, and advise you on how to respond. If you prepared your own taxes, consider consulting a tax professional for guidance. - Respond within the Deadline
IRS notices often come with a response deadline. Make sure you adhere to this deadline, as failing to respond in a timely manner could lead to additional penalties or complications. If you need more time to gather information, consider requesting an extension before the deadline expires. - Follow the Instructions
The notice will provide instructions on how to respond. This could involve submitting additional documentation, making corrections to your tax return, or providing explanations for specific items. It’s crucial to follow these instructions meticulously to avoid further complications. - Use the Appropriate Forms
If the notice requires you to provide additional information or explanations, use the forms specified in the notice. You can usually find these forms on the IRS website or obtain them by contacting the IRS directly. Make sure you fill out the forms accurately and legibly. - Keep Copies of Everything
Make copies of all the documents you submit to the IRS, including the notice itself, any forms or documents you include, and your response letter. This will serve as a record of your communication and the steps you’ve taken to address the issue. - Send Your Response by Certified Mail
When mailing your response, use certified mail with return receipt requested. This provides proof that you sent the response within the deadline and allows you to track the delivery. Keep the receipt and tracking information for your records. - Follow Up as Needed
After submitting your response, keep an eye on your mail for any further correspondence from the IRS. They may acknowledge your response or request additional information. If you don’t hear back within a reasonable time frame, consider reaching out to the IRS for an update on the status of your case.
Conclusion
Receiving an IRS notice doesn’t have to be a daunting experience. By following these steps and responding promptly and accurately, you can address the issue effectively and potentially resolve it without further complications. Remember that the IRS is there to help ensure compliance and resolve misunderstandings. If you’re unsure about how to respond or have concerns about the notice, don’t hesitate to consult a tax professional. Responding to IRS notices in a calm, organized, and proactive manner demonstrates your commitment to resolving any issues and maintaining your financial integrity.
If you received a notice, don’t just throw it in a drawer. Interest will continue to accrue and further late-payment penalties can result. Please reach out to us if we can help resolve any open notices you may have received.
