Understanding The Basics Of Written IRS Communications
For most Americans, finding a letter in the mailbox with an IRS return address can be panic-inducing. Tax liabilities and the IRS are things you must take seriously. After all, the consequences can be disastrous if you fail to make good on the taxes you owe or fail to file your taxes on time. Here's a look at some of the things you need to know about how to deal with an IRS letter if you get one.
You Should Never Ignore It
It's tempting to just throw the letter away, especially if you don't believe you're equipped to deal with whatever issues it raises. However, this is not the way to handle it. Any time you receive a letter from the IRS, you need to read the entire thing.
IRS letters will thoroughly detail whatever the issue is, how they arrived at that determination, and what your options are for resolution. In most cases, IRS letters are sent when you have a tax balance due, when there's been an adjustment to your tax filing and refund amount or balance owed, when they have questions or identity verification issues, or when there's a delay processing your tax return.
You Should Always Respond
Any notice from the IRS with a response deadline needs to be honored. Make sure that you respond with any requested information or payment arrangements by that deadline. The deadlines established by the IRS are heavily enforced, and failure to adhere to them will often result in significant financial penalties and interest. In even worse cases, it can also result in IRS levies on your assets.
You Should Call A Tax Law Attorney
Especially when it comes to audit issues, calculation errors, return adjustments, and penalties, you should talk with a tax law attorney right away. Tax laws are complicated, highly detailed, and confusing. To those inexperienced with tax laws, mistakes can be costly. As a result, you'll want to make sure that you work with someone who thoroughly understands those laws.
A tax law attorney can review the letter from the IRS and help you to evaluate what you need to do and how you should approach it. Follow the lawyer's advice to help resolve the situation with the best possible outcome.
These are some important things to think about when it comes to dealing with any kind of written communication from the IRS. The more you understand ahead of time, the easier it is for you to address the problem quickly and easily.
To learn more, contact a tax attorney.