If you received a letter from the IRS don’t worry – you're not alone, millions of Americans receive letters from the IRS every year. They send these out every year for a multitude of reasons, so it’s important to first not panic, and second, don’t ignore it. There are a few first steps to take if you received a notice in the mail.
Chances are, your letter is like most from the IRS and is about federal tax returns or tax accounts. Each notice deals with a specific issue and should include any instructions you need to know. It’s important to read it thoroughly and to check for deadlines.
If there is any indication that it is fraudulent or suspicious, call 800-829-1040. The IRS will never call you to initiate an audit. Scam callers will tell you they are calling from the IRS, but this is not the case. For extra confirmation you can always review your tax account on irs.gov to view your status and whether you owe money or not, or speak to a tax professional who would be able to spot a real letter from a fake right away.
A letter from the IRS does not immediately indicate an audit. Reasons you may have received a notice include a change to your tax return, need to verify your identity, you are due a smaller or larger refund, or you have a balance due. If you read through the notice explanation and you understand and agree with the changes – simply follow the instructions given. Most of the time this means that you won’t have to do anything. If you read through the explanation with full understanding and you do NOT agree to the changes or issue in question, you need to take further action. Keep in mind you should allow at least 30 days to receive a reply. If you are due a refund, it can take up to six weeks from the date noted on the letter.
Act fast! If your letter has a return address to the IRS, don’t toss it in your junk drawer, read it! Most notices have a 30-day response deadline, which means that you need to act fast. The process over the mail can be a lengthy timeline, so make sure you act fast and don’t ignore the notice you received. If you don’t respond quickly you could end up accruing more penalties and interest, or even worse, giving up your rights to appeal the IRS’s decision.
Even if you file your tax returns online, the rule of thumb is to keep your last three years of returns. IRS can include returns filed within the last three years in an audit, more if there’s a major error identified. When it comes to receiving your notices, you should keep copies of every letter or notice you’ve received, plus all correspondence or letters you’ve sent back to the IRS.
Even if the notice you received looks routine, that notice is crucial for your records. Tax Relief USA can help guide you through the tax resolution process from the second you receive a notice. Bring your letter into our office for a free consultation. Our representation services include taking over communication between you and the IRS during an audit, appeal, or when you’re dealing with a collector, helping individuals and small businesses get into compliance, answering questions for you, negotiations, appeals, and more. Find out if we offer what you need here. Remember to always keep records for yourself, read instructions thoroughly, and create your tax account on irs.gov to keep track of your balances, payments, and key information regarding returns.