What to do When You Get a Letter from the Taxing Authorities

As the first wave of tax filings were submitted in April, the IRS and other state taxing agencies have now begun their review process. This usually means a series of notices will be issued throughout the Spring and Summer to verify information, adjust tax returns, and assess penalties. We thought it would be helpful to give you some guidance on what to do if you receive a notice from the IRS.  Please note that the same advice applies to any state tax notices you may receive as well.

  1. Never IgnoreIgnoring may result in the accumulation of additional tax, penalties, or interest payable to the IRS depending on the nature of the letter. In many instances, the IRS will send a letter stating that they have made a change to a prior year return for which you may be required to take action.
  1. Act Quickly–Contact DKC – Contact DKC in a timely fashion. If any action or reply is required, it is ALWAYS accompanied by a deadline. Send us a copy of the notice received.  This allows us to review the letter and give guidance on the best way to respond. It is important for us to review the letter to determine the accuracy of the IRS’ basis for any changes made, as such changes often affect your refunds, taxes due, or future tax return filings.
  1. Avoid Scams – Scams regarding the IRS occur all too often. The IRS will NEVER call or e-mail you. Any initial correspondence will always be in the form of a mailed letter. There may be some instances where you will be required to call the IRS, but those are rare and the IRS will never initiate contact by phone.

If you have any questions about the guidance above or past correspondence with the IRS, feel free to reach out to our firm to discuss.

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