Don’t panic. Call your CPA and never attempt to respond to a letter on your own or call the IRS on your own. This will lead to stress and confusion and you may not be given the correct answer to solve the problem, as the IRS will only have their best interest in mind and not yours. Remember a CPA is not an expense BUT an investment. If you must answer on your own simply follow the instructions in 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.
If you receive a notice about a correction to your tax return, you should review it carefully. You usually will need to compare the information in the notice to the entries on your tax return.
If you agree with the correction, you usually don’t need to reply unless a payment is due.
If you don’t agree with the correction the IRS made, it’s important that you respond as requested. Respond to the IRS in writing to explain why you disagree. Include any documents and information you wish the IRS to consider, along with the bottom tear-off portion of the notice. Mail the information to the IRS address shown in the lower left corner of the notice. Allow at least 30 days for a response from the IRS.
There is no need for you to call or visit an IRS office to answer most IRS notices. If you have questions, call a CPA or call the telephone number in the upper right corner of the notice. When you call, have a copy of your tax return and the notice available.
Keep copies of any correspondence with your tax records.
Keep in mind some CPAs are specialized in techniques that can help grant you relief of penalties and interest even if you are in the wrong. This is why it is usually in your best interest to begin with a professional as opposed to dealing with the situation on your own.
Do not be afraid to explain your situation to a licensed professional. CPAs are quite familiar with these situations and deal with them on a daily basis so trust me…you are not going to tell them something they have never heard before.
