Yikes! – I received a letter from the IRS – What Now?

Each year the IRS sends millions of letters and notices to taxpayers. Although some people may feel anxious when they receive one, many are easy to resolve. Here’s what to do if you receive a letter or notice from the IRS:

  1. Don’t panic.
  2. Send your CPA a copy of the letter.

There are many reasons the IRS sends notices to taxpayers. The notice usually covers a specific issue about your account or tax return. It may request payment of taxes, notify you of a change to your account or ask for additional information. 
Allow me to interpret the letter and advise you how we should proceed

If you receive a notice about a correction to your tax return, we will need to compare the information in the notice to the entries on your tax return.

  • If we agree with the correction, we usually don’t need to reply unless a payment is due.
  • If we don’t agree with the correction the IRS made, then your CPA will craft a response and include documents and information we wish the IRS to consider.

Allow at least 30 days for a response from the IRS.

  1. Keep copies of any correspondence with your tax records.