Receiving a letter from the IRS in the mail can elicit an emotional response that is marked by fear and alarm. While the natural reaction may be to assume the letter contains bad news and to put it off for as long as possible, this is the last thing taxpayers should do. In fact, many IRS notices can actually be handled easily and painlessly. The following tips can help taxpayers respond more effectively and appropriately to communication from the IRS.
Open the Letter Immediately
People often want to delay dealing with bad news. However, when it comes to responding to the IRS, it is often within the taxpayer’s interest to open the letter as early as possible to allow more time to reply. Taxpayers should also resist the urge to avoid an IRS letter because the contents may relay helpful information or simply verify receipt of a previously submitted form or payment.
Read Carefully and Follow Instructions
The advantage to receiving written communication is having the ability to read, reread, and ask for professional advice to ensure correct comprehension and compliance. Taxpayers who receive a letter from the IRS should call their CPA if they are unsure of what the letter means or of how they should respond. A CPA can interpret the letter and help file any necessary forms, including taking the required steps to appeal the IRS’s decision.
Ask for More Time
Taxpayers should respond to the IRS even if they feel they do not have enough time to submit the required payment and/or documents. Aside from receiving a Notice of Deficiency, which requires a response within 90 days, most other situations have more flexible time constraints. It is important to retain copies of all communication whenever a request is sent to the IRS.
Individuals and businesses in New York, Washington, D.C., Maryland, Florida, and Utah may call on the accounting firm of Gary M. Kaplan, C.P.A., P.A. to assist in corresponding with the IRS. Mr. Kaplan and his staff are knowledgeable and experienced in assisting with a broad spectrum of situations including filing an extension, responding to audit letters, general tax preparation, and filing the correct documents to appeal the IRS’s action. Taxpayers are encouraged to call Gary M. Kaplan, C.P.A., P.A. (866)643-3560 for a free consultation.
