IRS Letters & Notices
Did you receive an IRS letter or notice? What They Mean & What to Do
« Understanding IRS Notices or Letters
What is an IRS Notice?
An IRS notice is an official correspondence from the Inland Revenue Service advising you of the need for a correction, adjustment, or proof. It can also advise you of an adjustment made by the IRS, penalties and interest, an audit, a tax levy, or anything the IRS needs to contact you about. In fact, there is a long list of possible notices that you can get from the IRS.
One advantage of these is that they are often very clear about the issue you are facing and what will happen. Additionally, each notice that requires action tends to be followed by warning letters where you fail to respond. While these can be stressful, the good thing is you know immediately where the problem lies, and you can find relief for most situations if you act promptly.
What Should I Do After Getting An IRS Notice or Letter?
Your course of action will always depend on the notice or letter you get, so reading it carefully is the very first step. Oftentimes a simple phone call to the IRS will help clear up any questions you have, but you can seek the advice of a trained and certified tax professional if you are afraid to approach the IRS. Usually, issues like high interest and penalties, unfiled returns, and audits are best dealt with through the help of a competent tax expert, while a simple missing document can often be handled on your own.
How Long Do I have to Act?
This depends on the specific notice you get. The date will be clearly stated so look carefully for information like that. Remember to act quickly so things like appeals and payment can be noted in time.
What Will the IRS Do Of I Do Not Respond?
The last thing you want to do is ignore an IRS notice or letter since the agency has the legal right to pursue you. Tax delinquencies can lead to levies and liens, omitted documents could lead to an audit, and missing an audit interview can have serious repercussions. The notice you get will state the penalty to expect (if any).