As part of my tax resolution practice in Lake Nona, a community within Orlando, FL "the City Beautiful", I have read a lot of IRS notices. I see a lot of clients who panic as soon as they receive a notice from the IRS. Many times, simply understanding the notice can alleviate a lot of stress. "Why did I receive a notice from the IRS?" The IRS sends notices and letters for the following reasons:
You have a balance due.
You are due a larger or smaller tax refund.
They have a question about your tax return.
The IRS needs to verify your identity.
They need additional information.
The IRS has changed your return.
They need to notify you of delays in processing your tax return.
As you can see, a few of these are not only nothing to panic about, but are actually beneficial to you... a larger tax refund... yes, please! So what should you do if you
received an IRS notice?
Next steps after receiving a notice from the IRS
Read the notice You would be surprised by how many people do not read the tax notice. They either put it aside and forget or they set it aside hoping it will go away. Neither of these is a good idea. Open the IRS notice and read it, immediately.
Respond to the notice Not all, but many notices from the IRS require a response by a specific date. You do not want to miss these deadlines. Often times by missing these deadlines you can lose your ability to appeal or have additional penalties and interest added to your balance.
Pay the amount due Paying what you owe to the IRS will solve the issue and get you out of the collection process. However, it's not always that straight forward. You may disagree with the IRS and their determination. It is often a good idea to get help from a tax professional before you respond to the IRS notice.
Keep a copy of the notice It’s important to keep a copy of all notices or letters with your tax records. You may need these documents at a later date.
If you or someone you know has received a notice from the IRS and need help understanding and/or dealing with it, please contact me at (407) 243-8678 or brad@wootencpa.com or schedule an appointment.
-Brad
I enjoy helping individuals with tax preparation and tax planning as well as offering tax help to individuals dealing with tax debt, IRS liens, IRS levies, Wage Garnishments, etc. I also service businesses (including nonprofits and churches) by providing tax preparation and tax planning as well as consulting for accounting, bookkeeping, and other finance related questions. I live in Orlando, FL, but I serve clients all across the country. Schedule an appointment if you need assistance and take a look at the resource page.
6900 Tavistock Lakes Blvd Ste 400
Orlando, FL 32827
(407) 243-8678
Serving clients in Orlando, Lake Nona, Altamonte Springs, Apopka, Azalea Park, Celebration, Hunters Creek, Lake Buena Vista, Lake Hart, St Cloud, Winter Garden, Winter Park and via the latest technology remotely around the country.
*The blog posts (as well as the YouTube channel) are my personal opinions and thoughts about a wide range of topics. They are not meant to apply to individuals specifically and should never be relied on as tax or investment advice. You should contact a professional for specific advice before taking action.