7 Things To Know About IRS Notices

Receiving a notice from the IRS can be a frightening experience, especially if that notice mentions a wage garnishment, bank levy or tax lien. Taxpayers faced with an IRS notice may experience many different emotions ranging from anger to panic and everything in between.

The reality is that while many notifications from the Internal Revenue Service are serious, some are merely courtesy reminders and general correspondence. Given the range of implications that can come with a letter from this government agency, here are seven things every taxpayer should know about IRS Notices:

1. The IRS disseminates millions upon millions of notices and letters to taxpayers every year, many of which are merely notifications.
2. Aside from requests to pay taxes, the IRS also sends notices informing taxpayers of changes to their tax account, explaining refunds, and requesting additional information.
3. Ignoring an IRS notice can lead to serious problems, including liens, levies, garnishments, loss of income, emotional distress, loss of sleep, etc.
4. Each IRS notice addresses a very specific issue about a tax account or specific tax return and includes provide specific instructions to the taxpayer regarding how to satisfy the IRS request.
5. Correction notices received from the IRS should be carefully reviewed and compared against the taxpayer’s copy of the return to ensure that no errors were made.
6. If the taxpayer agrees with the notice, the only options are payment, offering a payment plan and settling the debt.
7. Taxpayers that disagree with IRS adjustments should reply promptly. Explanations should be made in writing and should include copies of relevant documentation to support the claim. The IRS may take 30 to 60 days to respond.

While the IRS does not require that a taxpayer call or visit the tax office to address a problem, tax professionals may do both depending on the specific situation. Taxpayers should retain copies of all notices and follow up correspondence. These should be stored in a secure, fireproof filing cabinet according to IRS document storage recommendations.

The IRS provides additional information about IRS notices and bills in Publication 594, The IRS Collection Process. They provide details about interest charges and penalties in Publication 17, Your Federal Income Tax for Individuals.

If you received a notice from the IRS and have questions about your next steps, don’t delay.

Contact AmeriPride Tax Group today for a free, no-obligation consultation at 855-AMERIPRIDE.