The Tax Lawyer—Rob Wood “IRS Bill Dispute”

Everyone must pay federal income taxes, but you also can contest many Internal Revenue Service tax bills. When you disagree with the IRS, procedure is important. You must pay attention to the order in which notices arrive and the specific ways in which you can respond. Here are 10 things you should know:

1. Most Audits are Via Correspondence

Most audits these days don't involve sitting across the desk from an IRS agent. Let's say you file your tax return and later receive a notice from the IRS saying it has information that you received $6,000 you didn't report. Usually such a notice will ask you to sign the form and mail it back if you agree. Alternatively, the letter will ask for an explanation of why the information is incorrect. You can contest it--if you do so promptly.

2. Watch Out for Proposed Deficiencies

The notice described above is not a Notice of Proposed Deficiency. Still, you should answer it. An Examination Report may follow the first notice if you fail to respond. Most tax lawyers call the Examination Report and accompanying letter a "30-day letter"--it will say you have 30 days to respond in a so-called administrative protest.

3. Make Sure You Prepare a Timely Protest

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