What to do If You Receive a Letter from the IRS or State

Most of us hope to never receive a letter from the IRS or the state unless it’s a refund check! Receiving aletter about your Federal, or State taxes can be nerve-racking, but don’t panic if you get one. Letters are sent out for various reasons and don’t necessarily mean you’re being audited. Also, keep in mind the IRS and state will contact you by mail only, they will not call or email unless you’re already working with an agent.

If you receive a letter from the IRS, here are some tips to guide you.

  • Don’t ignore it. Read the letter carefully to understand why they are reaching out and how they want you to proceed. If you don’t understand the notice, contact us immediately. Our team at Innovative Tax & Accounting is here to help you.
  • Take action quickly! Don’t delay as time is of the essence.
  • Reasons you may receive a letter from the IRS
    • A change in your refund amount
    • Proposed changes were made to your tax return
    • Your tax return may be delayed
    • You owe money
    • A payment is due
  • If the letter states the IRS made a change to your tax return, then review it and compare the changes to your original return.
  • If you agree with the change, you typically don’t need to reply, unless you owe money. If you owe money, instructions will be included on how to send in a payment.
  • If you don’t agree with the notice
    • Read the notice for instructions on how to respond
    • Don’t sign the notice
    • You may have to write a letter that explains why you are disputing the request and include all documents/forms you want the IRS to consider
    • Include your phone number
    • Sign your letter and mail it in with the unsigned response form
    • Mail the documents to the IRS
    • It can take up to 30 days to receive a response
  • Keep copies of all notices you receive, as well as all documents you send.

If you owe money, there are payment options available, such as paying online or establishing a payment plan. Don’t panic and ignore the letter. Ignoring it can lead to a “payment of Intent to Levy”.

Should you have any questions, you can call the phone number in the upper right corner of the letter. When you call, be sure to have a copy of your tax return and the letter you received.

Also, be aware of tax scams. The IRS will never contact you via social media, nor will they ask for your personal information or request payment with pre-paid debit cards.

For additional information on what to do when you receive a letter from IRS, you can visit their website.

All of us at Innovative Tax & Accounting are here to help you. If you receive a letter that you’re not sure about, bring it by or mail/email a copy.  We’ll take a look and guide you in resolving the issue.

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