Dealing with IRS Notices

Dealing with IRS Notices

No one wants to deal with those IRS letters, but there is a light at the end of the tunnel. At our firm we can help you deal with this unfortunate event of receiving an IRS notice. Getting a notice from the IRS can be upsetting, however it is important to read it carefully because not all IRS notices are related to tax audits. First lets discuss the notice itself.

About the Notice

The notice or letter states the reason it was sent, its purpose, and instructions on how to respond. Normally there is a specific issue related to your account or tax return. The notice could be to inform you of additional tax you owe, that your refund is larger than originally reported, or to request additional information about your tax return.

On the upper right hand corner is a notice number. This number also prints on the lower left hand side of the tear-off stub included with the notice or letter. The IRS website has a table explaining each type of notice by number (see Resources). Match your letter's number with the number in the table to get more information. Though the contents may vary slightly based on the individual case, notices with the same number have the same basic purpose.

What to Do & How Ronald L. Briggs can Help

You generally have 30 days to respond to an IRS notice.
Always check which tax year the notice relates to.
Do not assume that it relates to your most recent tax return.

It is also very important to understand that the notice MAY NOT be correct - that's where we can help as a tax professional.

Ronald L. Briggs has over 30 years of tax experience and can help you or your business save a lot of headaches and money. Here are some examples of how he helped clients reduce or completely diminish penalties and fees altogether.

- One client received notices of owing $3,090.85 for 2011 and $920 for 2013. We were able to successfully get these penalties reduced to $0.

- The client, a tax-exempt organization, got a notice for $4,492.70 for failure to file their tax return, we were able to get the entire penalty abated.

- A bookkeeper for a large corporation received notices totaling $234,929.07 for Civil Penalties. The Company had failed to pay it’s payroll taxes and because she had the ability to write checks, she was assessed the penalty. I was successfully able to get an Offer In Compromise for $4,393, a reduction of $230,536.07. It took almost 18 months to get this resolved.

The most important thing to do is to respond – ignoring notices will get you nowhere and could result in additional penalties down the line.