03/24/2023
Have you received a letter from the IRS?
Receiving a notice from the Internal Revenue Service is usually no cause for alarm. Every year the IRS sends millions of letters and notices to taxpayers. In the event one shows up in your mailbox, here are some things to know:
1) Don't panic. Many of these letters can be dealt with very simply.
2) Don't ignore it. Most of these letters have a “reply by” date. Inaction can lead to additional interest and penalties or more aggressive action from the IRS.
3) If you receive a notice about a correction to your tax return, you should review the correspondence and compare it with the information on your return. If you agree with the correction to your account, usually no reply is necessary unless a payment is due.
4) If you do not agree with the correction the IRS made, it is
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 contact stub at the bottom of the notice. Mail to the address shown on the letter. Allow at least 30 days for a response from the IRS.
5) Most correspondence can be handled without calling or visiting an IRS office. However, if you have questions, call the telephone number in the upper right corner of the notice. When you call, have a copy of your tax return and the correspondence available.
6) Keep copies of any correspondence with your tax records.
Some letters can be resolved simply by having you contact the
IRS directly. Other, more complicated issues may require you to sign Form 2848, Power of Attorney and Declaration of Representative, to allow your tax professional to communicate with the IRS on your behalf.
Looking for help with tax preparation or consulting? You can reach us at 541-870-2371 or online at www.ritchtaxservice.com.