If you received a letter from the IRS (Internal Revenue Service) this fiscal year, it is critical that you do not panic. During tax season, the IRS agency sends several sorts of notifications to each taxpayer. It is crucial to realize that not every letter indicates that you are likely to face a tax audit.
In most circumstances, IRS tax letters are for regular purposes and may be quickly rectified. This post provides some helpful advice on what to do if you receive an IRS notice in your mailbox.
A notification from the IRS doesn’t have to feel like an arrest warrant. We’ve outlined some strategies and tips for dealing with this situation. Keep reading to learn more!
1. Maintain Your Cool
Before you worry and create a frightening scenario, remember that not all IRS notifications contain worrisome alerts. Actually, you can handle the majority of the notices swiftly and painlessly. All you have to do is thoroughly examine the notification to determine what it covers.
2. Don’t Ignore It
When you receive notice from the IRS, do not ignore it under any circumstances. At times, you might end up inviting further trouble if you neglect the notices.
The law requires you to reply to a notice from the IRS by delivering a proper explanation or by filing applicable forms. If you do not reply, the IRS will impose penalties. Some of the penalties can be quite expensive. Hence, it is best to reply to the notices as soon as you receive them.
3. Identify the Type of Notice
The IRS sends different types of notices to taxpayers. The most common notices the IRS issues to taxpayers include CP (Clerical and Procedural) notice and CP-2000. Both of these notices are demanding, especially CP-2000.
There is another type of notice that the IRS sends to taxpayers, which is called CP (Clerical) notice. This notice can be sent to the taxpayers when they send the wrong information to the IRS. The taxpayers will receive this notice if the IRS can not match the information that the taxpayers gave with the information held by the IRS.
Be assured that CP-2000 is the most authoritative notice that the IRS sends to taxpayers. The IRS sends this notice when there are pending taxes that you failed to pay on time.
4. Have the Letter Handy
In general, the IRS recommends that taxpayers maintain records, including letters and notifications from the agency, for three years from the date they filed their tax return. Many of these letters contain information concerning money owing to you, such as economic stimulus payments, that may be used as a reference while completing your tax return. They can also be used to assist you in resolving an IRS dispute.
If you are unclear if the IRS has received your tax return or if your tax refund has been delivered to you, go to www.usa.gov/check-tax-status.
To summarize, it is important to note that you can handle most of the IRS notices on your own. But in some cases, it might be far more effective if you can also seek assistance from tax resolution professionals.
Axiom Tax Resolution Group is a tax resolution services specialist that can help business owners overcome various tax issues. If you are looking for tax relief solutions and more, reach out to us today!