Whether it is the middle of Tax Season or summer vacation when you have forgotten all about taxes, a notice from the IRS can come at any time. The first thing you need to remember when you receive one is not to panic. The next thing you will want to do is send us a copy of the notice.
Millions of IRS notices are sent every year for a variety of reasons. Your notice will be specific about the issue it is addressing. Read carefully and review all of the information. Some notices are simple to inform you of an update to your account, a correction, a request of payment, or a request of additional information. Even if no action is required by you, send a copy of the letter to your Tax Preparer. They will advise you as to the proper action to take and keep it on record. You will also want to keep all correspondence for your records.
If you disagree with the correction, write a letter according to the directions on the notice. Be clear and concise, providing proof and supporting documents if necessary. Include the bottom portion of the notice with any payment or correspondence, this will include the address to send it to as well as the notice information and details for the IRS to refer to. Do not worry if you do not receive a reply from your correspondence right away; it can take several weeks to process and correct the changes.
In the case the letter informs you of an amount you owe the IRS, pay it immediately. The notice will have a date it is due by; after this date, additional penalties and late fees will be added to the amount. Late fees can be 5% of the amount due per month, which adds up quickly even if your amount due is not large. To learn more about penalties and late fees, view the IRS’s article on “Eight Facts on Late Filing and Late Payment Penalties.” When paying by check, include the voucher (bottom portion of the notice) in the envelope. On the check, write the taxpayer’s social security number, the form (such as “Form 1040”) and the tax year the payment is applicable to.
If you received a notice and are uncertain what steps you need to take, or would like to be aware of all of your options, you are welcome to contact our office for more information. Contact us via our office phone, (425) 242-0636, or via email, office@phd-tax.com.
