- Don’t Panic. It’s mail. It doesn’t have teeth, so you might as well open it and read it.
- Don’t Ignore It. It is important that you do reply to IRS notices promptly, otherwise ignoring the issue can bring unwanted consequences.
- Focus on the Specific Issue and Follow Instructions. IRS notices usually deal with a specific issue regarding tax returns or tax accounts. Read the notice carefully so you can take the appropriate action. Sometimes the letter is simply a notice, nothing more.
- No Need to Visit the IRS. If you have questions, there is a phone number you can call in the upper right corner of the notice. Have a copy of your tax return and the notice with you if you do make a call. Most notices however will not require a call or visit.
- Keep the Notice. Record-keeping always saves you from potential future complications. Keep the notice with your tax records.
- The Right to Retain Representation. The Taxpayer Bill of Rights (TBOR) is 10 broad categories consisting of your rights in our tax laws. Two things to keep in mind is your right to retain an authorize representative to represent you when dealing with the IRS, and your right to seek assistance from a Low Income Taxpayer Clinic if you can’t afford representation. The IRS website contains documentation of the TBOR.
There are some specific types of letters you may receive:
- Correction Notice. If the letter reads that the IRS corrected your tax return, you should review the information and compare it to the changes on your tax return. If you agree to the changes you don’t need to reply unless there is a payment that is due. If you don’t agree then it is important that you respond right away. Include all information and any documentation to help the IRS consider your request. Include the bottom tear-off portion of the notice with your letter. Allow at least 30 days for a response.
- Premium Tax Credit. This letter may ask for a copy of your Form 1095-A, Health Insurance Marketplace Statement, in addition to asking to clarify or verify your premium tax credit information.
The IRS specifically states that “The IRS first contacts people about unpaid taxes by mail – not by phone. The IRS does not initiate contact with taxpayers by email, text or social media.” Don’t fall for phone and email scams that use the IRS logo as a lure. Need a professional representative or help understanding your notice? Call us at 407.892.1066!