Tax Tips of the Week!

[C.Rand]

8 Tips About IRS Notices

Have you ever seen a letter in your mailbox from the IRS and freaked out--BEFORE you opened it? Here are 8 IRS Tips about what you should know about receiving an IRS Notice:

1. Don’t panic! Many of these letters can actually be dealt with rather simply and painlessly.
   
   
2. The notice you receive normally covers a very specific issue about your account or tax return. Notices may request payment of taxes, notify you of changes to your account, or request additional information.
   
   
3. Each letter and notice offers specific instructions on what you are asked to do to satisfy their inquiry.
   
   
4. If you receive a  correction notice, you should review the correspondence and compare it with the information on your return.
   
   
5. If you agree with the correction to your account, then usually no reply is necessary unless a payment is due or the notice directs otherwise.
   
   
6. If you do not agree with the correction the IRS made, it is important that you respond as they've requested. You should send a written explanation of why you disagree and always include any documentation that you want the IRS to consider, along with the bottom (tear-off portion) of the notice. You will need to include this with your reply-though a letter from the IRS will make you feel like you are the ONLY person in the universe that they've contacted, you're not. They send out MILLIONS of letters very often and you'll want to ensure your information is properly documented against your account. Moving on...then mail the information to the IRS address shown in the upper left-hand corner of the notice and allow at least 30 days for a response to your submissions.
7. Most correspondence can be handled without calling or visiting an IRS office. However, if you do have questions, call the telephone number in the upper right-hand corner of the notice. Have a copy of your submitted tax return and any correspondence available when you call to help respond to your inquiry.
   
   
8. It’s important that you keep copies of any correspondence with your records. You'll be surprised to know how important old records are for any future references.

-Keeping you in the loop...

For more on this topic, assistance with you small business or nonprofit accounting needs contact our office:

 

Envision Tax & Accounting Svcs. of Florida

37 N. Orange Ave., Suite. 500

Orlando, FL 32801

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 or on the web:

www.EnvisionTaxandAccounting.com

 

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