Tax Notices

Rachael L. Mostoller

Are you one of the millions of taxpayers that have received a tax notice in your mailbox? If so, first – CALM DOWN, and then read below for some helpful tips.

• Not all notices are bad news. Open the envelope and read over the details of the notice, do not ignore the notice.
• The worst thing you could do is to ignore a notice. Ignoring the notice will not make it go away. In most cases, the situation will deteriorate and prevent a potential “easy fix.” If payment is due, ignoring the notice could result in payroll garnishments or bank levies.
• Make note of the instructions included in the notice. Sometimes the notices do not require any response; other notices will provide a due date for your response with the required information.
• If the notice requires a response, the recommended procedure is to write a letter and include copies of any information that is relevant to the notice. Ensure that you keep a copy of all of the information that you send for your own records. You may also want to consider sending the information via certified mail to record that your information was received.
• Ask for an extension if the notice provides a due date and you cannot respond, for any reason, by the date provided. Most agencies will offer additional time for your response, but you must confirm that an extension is permissible.
• Review the details of the notice and compare the details to your records to determine if you agree with the changes presented in the notice.
• You may want to consider asking for assistance from a professional. A tax advisor or tax lawyer may be better at navigating the challenges that come with some notices. Depending on the situation, paying a profession may actually save you money.

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To ensure compliance with requirements imposed by the IRS, please note, any advice contained in this publication was not intended, or written, to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing or recommending to another party any transaction or matter addressed herein. This publication is distributed with the understanding that the publisher and distributor are not providing legal, accounting or other professional advice and assume no liability whatsoever in conjunction with the information contained within this publication.