Have you received an IRS notice or letter and are afraid to open it? Don’t worry; many of these letters can be resolved easily and painlessly. Every year, the IRS sends millions of letters and notices to taxpayers requesting payment of taxes, notifying them of a change to their tax account, or to request additional information. Usually the notice deals with a specific issue about your tax return and provides instructions on what needs to be done to adequately respond to the issue.
The letters also advise you of your rights and other information required by law. Thus, the IRS notice or letter can become extremely lengthy and sometimes difficult to understand. That’s why it is important for you to contact a tax professional with experience in handling IRS collection and audit matters. Don’t wait too long to respond or toss the letter in a drawer hoping the problem will go away. Most of these letters are computer generated and if you fail to respond within a certain period of time, another letter will automatically be produced. Unfortunately, each succeeding letter becomes more aggressive and thus more difficult to deal with. You should not automatically pay the amount the IRS is requesting unless you are certain it is correct. Many times, you do not owe all or some of the amount demanded, and it is difficult and time consuming to get your money back.
It’s not usual for the IRS to send these letters to taxpayers and they don’t know it because they have moved and left no forwarding address. Even though the IRS will update your address when you file your tax return, it may not be timely enough, especially if your return is on extension or you have unfiled returns for past years. It’s always best to notify the IRS of your address change as soon as possible. This can be accomplished by filing Form 8822 “Change of Address” with the IRS. Nobody wants to receive correspondence from the IRS, but it is easier to deal with any tax problems sooner rather than later. The matter can only escalate as more notices are issued.
It’s important that any IRS correspondence be dealt with promptly and accurately so your tax problem does not spiral out-of-control. The tax relief professionals at East Coast Tax Consulting Group can handle these matters for you. Call 561-826-9303 for tax help!