What to do if I get a Notice from the IRS?

The IRS reports that it sends millions of letters and notices each year to taxpayers for a variety of reasons. While rarely welcome, there are a few things to keep in mind if one shows up in your mailbox.

1. Don’t panic. There are many reasons why the IRS sends correspondence but most of them require only a simple response. If you receive an IRS notice, it will typically cover a very specific issue about your account or tax return. Notices may require payment, notify you of changes to your account or ask you to provide more information.

2. The notice will always provide specific instructions on what you need to do to satisfy the inquiry.

3. If you receive a notice advising you that the IRS has corrected your tax return, you should review the correspondence and compare it with the information on your return. Keep in mind that the IRS is often wrong in these corrections so don’t assume you have to accept the proposed changes.

4. If you agree with the correction to your account, then usually no reply is necessary unless a payment is due or the notice directs otherwise.

5. If you do not agree with the correction the IRS made, it is important that you respond as requested. You should send a written explanation of why you disagree. Include any information and documents that support your response.

6. Whenever you send a response to the IRS, make sure to include a copy of the IRS Letter you received, including the address page. This will help to get your response to the right place. Also remember that the IRS handles millions of pieces of mail and more than a few get lost. If you’ve not received a response within 30 days then follow up on your response.

7. Always keep copies of any notices you receive and response you provide with your tax records. You’ll need them for a variety of reasons, not the least of which is reminding the IRS of what’s already occurred.

8. And beware of any email correspondence claiming it’s from the IRS. The IRS sends notices and letters by mail ONLY and never contacts taxpayers directly about their tax account or return via email.

By: Evan A. Nielsen, Esq. (Licensed in California)