On a normal day, a trip to the mailbox is an easy task. Today’s mail, however, brought an unwelcome surprise…a letter from the IRS. Where should you start? What should you avoid? Start with this list of do’s and don’ts when dealing with a tax problem.
Don’t ignore the letter. If you delay, you may pass up opportunities to resolve the issue or prevent penalties and interest.
Do read the letter completely and carefully…even if taxes are not your thing. Sometimes, there is a simple answer that can resolve the issue with little explanation. The next steps, instructions on how to respond, and your rights are also outlined here.
Don’t assume that you owe the balance in the letter. At times, the automated matching systems at the IRS calculate taxes that you might not owe.
Do review the information on IRS.gov regarding the specific items in your case to make sure that you know exactly what to do next.
Don’t wait to respond until you can pay. There are many options to make payment arrangements with the IRS if you do owe.
Do contact your tax professional. If you don’t have a tax professional, find someone who is available to answer your questions in whatever season you need help.
There are many resources available for resolving tax problems, even when they seem to pop up out of the blue. With some time and reading, these issues can be handled so that your mailbox is a safe space again. Don’t have the time? Enrolled Agents are tax professionals that are specifically licensed by the U.S. Treasury to represent taxpayers before the IRS with jurisdiction in every state. Martin Tax & Financial, LLC have a team of Enrolled Agents ready to help you. Call our office for a free consultation!